The legitimacy of Bitcoin futures is becoming more assured for individual clients, as Morgan Stanley joins rival Wall Street firm, Goldman Sachs and others in clearing the futures products run by the CBOE Group and CME Group.
In the wake of the launch of Bitcoin futures trading on Dec. 11 along with the volatility and fluctuation of Bitcoin’s price, a diversity of opinions rose in the Bitcoin community with some leaning toward possible manipulations of the market. Subsequently, there were also fears that the launch of these regulated futures trading products would make shorting more accessible to the investors, thereby driving the price down.
These speculations were put to rest by the alignment of Morgan Stanley with Goldman Sachs, TD Ameritrade, E*Trade and others to clear Bitcoin futures. This is due to the fact that the more firms that get involved, the more validity the product is given.
Jonathan Pruzan, Morgan Stanley’s Chief Financial Officer said this deal was basically attuned to the needs of institutional investors. He stated that it was for core institutional investors whose participation is in a derivatives transaction.