Bank of America, one of the largest banks in the United States, has reportedly approved Bitcoin futures trading for specific clients. A report by Coindesk stated that two individuals who were well versed with the matter had disclosed the launch, but the two chose to remain anonymous.

The crypto sector is a sensitive area, and many financial institutions that show interest in the sector do so cautiously and remain conservative about the matter. However, this year, the increased demand for cryptocurrencies following a massive crypto boom and increased institutional interest has forced these banks to offer crypto-related services.

Open to Some Clients

The service will only be open to specific clients because of the high margin required when trading the crypto futures. The sources stated that some clients had already set up accounts to trade Bitcoin futures that will be settled by cash. One or two of these accounts were already in operation, and the bank will be using CME futures.

Bank of America has failed to issue any further comments about the matter. However, the news comes shortly after another report stating that the bank had put together a research team to focus on the cryptocurrency sector.

Bank of America was among the major banking institutions that largely critiqued Bitcoin in the past. At the beginning of the year, the bank published a study stating that Bitcoin could not be used as a store of value because of immense price volatility. In 2018, the bank had also banned clients from engaging with investment products linked to BTC, but this policy has since been rescinded.

Financial Institutions Embrace Crypto

Bank of America is among the major banking giants in the US that have shown growing interest in cryptocurrencies to meet the growing demand. In March, Goldman Sachs relaunched its crypto trading desk. Two months later, the bank started buying and selling Bitcoin futures using block trades at the Chicago Mercantile Exchange (SMR) Group.

Banks showing interest in cryptocurrencies are those that fear being left behind in this year’s crypto rally. The adoption of cryptocurrencies by major payment firms and growing demand has changed perspectives. Payment firms such as Visa and MasterCard have launched crypto offerings.

The growing institutional adoption also has a positive effect on the values of cryptocurrencies. The recent announcement by Bank of America led to a $1000 gain in BTC’s prices.