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Morgan Stanley to venture into Bitcoin derivatives trading market

The FI is apparently partnering with other major Wall Street players to create new ways for clients to invest in the cryptocurrency market

US investment banking giant Morgan Stanley has plans to offer to trade in complex Bitcoin derivatives, a source close to the matter told Bloomberg. It will apparently partner with some other big names in Wall Street to create new ways for clients to invest in the crypto market.

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Its plans contemplate dealing in contracts to provide investors synthetic exposure (a term for financial instruments that are created artificially by simulating other investment tools with different cash flow patterns) to the performance of Bitcoin, says the source. The person giving the information asked for anonymity, while a spokesperson for Morgan Stanley declined to comment.

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Investors can go short or long

The new instrument will allow investors to go long or short utilising the so-called price return swaps. Morgan Stanly will charge a spread for each transaction.

The aforementioned source reveals the bank is already prepared technically to offer Bitcoin swap trading. However, the launch of the platform will take place once institutional client demand has been confirmed and after completion of an internal approval process.

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