TL;DR Breakdown
- Bitcoin Futures have been gaining a lot of popularity nowadays on crypto exchanges.
- Owing to their popularity, the Bank of America has approved Bitcoin Futures trading.
- The growing demand made Bank of America one of the few banks that allow Futures Trading.
You can term Bitcoin Futures as “derivative products” that help people actively invest in crypto trading without actually getting involved with the help of contracts. This is done using smart contracts and agreements.
The second-biggest bank in the United States has agreed to allow Bitcoin Futures trading, which made it one of the very few to do so. This is a sign of the increasing influence of Bitcoin in the monetary system.
Bitcoin Futures trading will attract institutional money
Bitcoin Futures trading has been at the top of preferences for plenty of institutions. The reason behind this fact is the regulations imposed by multiple governments on the trading of Bitcoin Futures.
The institutions that do not want to invest directly in cryptocurrencies can easily put in their money on Bitcoin Futures and actively participate in trading Bitcoin and other currencies.
Bitcoin Futures is a bet
Bitcoin Futures can be used in long or short positions as people agree to bet their money on the future price of Bitcoin. The bets are placed, and agreements represent the price of a digital currency.
If users select long positions, they agree and sign the contract to buy at a certain date, and when the date actually comes, the contract is fulfilled as the settlement is made. Such a convenient form of investment is what many institutional investors are looking for.