Bank of America is offering crypto exchange-traded products for some of its clients, report says

Bank of America
Bank of America

  • Bank of America clears and settles crypto exchange traded products for selected clients, according to a report by Coindesk.
  • Last week, the company said in an internal memo it plans to add a crypto research team.
  • A Coindesk report on Tuesday said the bank was offering ETPs to some of its hedge fund clients.
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Bank of America is now offering crypto exchange-traded products for some of its global clients, as it seeks to tap into investor demand for digital assets, according to a report by Coindesk.

Coindesk said on Tuesday the bank was offering ETPs to some of its hedge fund clients, according to three sources with knowledge of the matter.

The bank, the largest in the US by assets, follows competitors JPMorgan, Goldman Sachs and UBS in offering crypto-linked ETPs to some of its customers.

The bank occasionally clears and settles crypto-related ETP trades to some of its global clients and has done so for some time, according to a source familiar with the matter that spoke with Insider on condition of anonymity.

Bank of America declined to comment when contacted by Insider.

To bolster its trading and investment options in digital currencies, the bank also plans to create a crypto research team, according to an internal memo earlier this month.

A number of major banks and fund managers have added crypto-related products and services to tap into demand from anyone from institutional investors to individual traders, largely thanks to the kind of returns that volatile cryptocurrencies can bring.

Bitcoin, the largest cryptocurrency by market value, is up by more than 200% year on year, trading at around $31,800. But it swung from lows of just $8,905 to highs of almost $65,000 in that period of time.

This story has been updated to include Bank of America’s official response and to add that it offers these services to clients globally.

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Bank of America is joining the growing number of banks that will allow clients to use various crypto exchange-traded products, report says

Bank of America
Bank of America

  • Bank of America will allow its clients access to a number of crypto exchange-traded products, according to a Coindesk report Tuesday.
  • Last week, the company said it would allow some clients to trade bitcoin futures and plans to add a crypto research team.
  • The company has joined JP Morgan, Goldman Sachs and UBS in creating crypto products and services in response to client demand.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bank of America is going to offer its clients access to a number of cryptocurrency products, joining a growing number of its peers that are rapidly tapping into investor demand for digital assets, according to a report on Tuesday by Coindesk.

The bank will allow its clients to use various crypto exchange traded products (ETP’s) according, to three knowledgeable sources, Coindesk reported on Tuesday. These ETPs will be aimed at European hedge funds, the report said.

Bank of America was not immediately available for comment when contacted by Insider.

Bank of America, the largest US investment bank by assets, follows competitors JPMorgan, Goldman Sachs and UBS in offering crypto-linked ETPs.

This is the bank’s second big step to expand its cryptocurrency products. Last week, it allowed some customers the option to trade bitcoin futures.

To bolster its trading and investment options in digital currencies, Bank of America also plans to create a crypto research team, according to an internal memo earlier this month.

A number of major banks and fund managers have added crypto-related products and services to tap into demand from anyone from institutional investors to individual traders, largely thanks to the kind of returns that volatile cryptocurrencies can bring.

Bitcoin, the largest cryptocurrency by market value, is up by more than 200% year on year, trading at around $31,800. But it’s swung from lows of just $8,905 to highs of almost $65,000 in that period of time.

This story has been updated to include Bank of America’s response, with no further changes to the text.

Read the original article on Business Insider

Silver spikes 13% to 8-year high as Reddit day traders turn their buying power towards a fresh target

GettyImages 458005108
  • The price of silver jumped as much as 13%, to $30.35 per ounce, on Monday as amateur investors piled in. The metal hovered near an eight-year high.
  • The so-called silver squeeze follows the Reddit-driven surge in GameStop shares last week.
  • But the rally sparked controversy on Reddit, with users saying GameStop should remain the target.
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The price of silver on Monday jumped as much as 13%, to $30.35 per ounce, hitting an 8-year high. The surge pushed up shares of silver-mining companies and causing retail sites to limit trading amid the latest attempt of amateur investors to squeeze Wall Street.

But the so-called silver squeeze proved controversial on the Reddit forum Wall Street Bets, with many users arguing the army of day traders should keep targeting GameStop shares and not shift their sights elsewhere.

Last week, traders organizing themselves on Reddit realized their power when they bid up GameStop shares by more than 200%, hitting hedge funds and others who had been betting the price would fall for more than $19 billion.

On Monday morning, the pivot towards other targets picked up speed, with the hashtag #silversqueeze trending on Twitter. Online financial personalities were cheering on day traders, with bitcoin investor Cameron Winklevoss tweeting: “If Silver market is proven to be fraudulent, you better believe Gold market will be next.”

It has risen around 17% over the last five days as Wall Street Bets members encouraged each other to buy up silver in the belief that major financial institutions are betting the price will fall.

Read more: Buy these 4 stocks poised benefit from a spike in silver prices, says RBC Capital Markets – including two set to soar 73%

The latest data from the US regulator showed money managers are betting the price will rise, however.

BlackRock’s iShares Silver Trust surged more than 10% on Monday. The world’s biggest silver exchange-traded fund saw inflows of close to $1 billion on Friday.

Shares in silver companies jumped. Miner Fresnillo’s London shares soared 17.81% while Polymetal International was 6.93% higher.

Silver retail sites were left struggling to keep up with the demand. Money Market said it would not be taking any further silver orders until mid-Monday morning due to “extreme demand”. APMEX said it was expecting processing delays of up to three days.

Yet the move into silver was controversial on the Reddit forum Wall Street Bets. Some users noted that huge investment banks, and the hedge fund Citadel Advisors, were the biggest holders of the iShares Silver ETF.

“By buying silver/going long on silver, you would be directly putting money into the pockets of the EXACT HEDGE FUNDS ON THE OTHER SIDE OF $GME,” one user posted. Others said the Reddit army should focus their efforts on driving up the GameStop share price, which was around 8% higher in pre-market.

Milan Cutkovic, market analyst at trading platform Axi, said silver is a “far more difficult” market to move than smaller stocks such as GameStop. Yet he said that “last week’s events showed that the impact of the retail frenzy should not be underestimated.”

Read more: Buy these 26 heavily shorted stocks as retail traders trigger wild rallies in Wall Street’s least-liked names, Wells Fargo says

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