Merryll Lynch closes the doors to cryptocurrencies

Merryll Lynch closes the doors to cryptocurrencies: an important decision on the future of virtual currencies.

In an article the Wall Street Journal published last January 3, it is highlighted as Merrill Lynch has actually prohibited brokers from offering derivative financial instruments that are based on them bitcoin, like the recent ones contracts negotiable futures on regulated markets, or holdings in Grayscale Investment Trust.

Moreover, this is not the only example of big financial that has chosen to close its doors to virtual currencies. But, contrary to Merrill Lynch, it is also true that some major operators such as Goldman Sachs Group and JP Morgan Chase are evaluating the possibility of offering their customers derivatives on bitcoin, thus opposing those who do not want to follow this path.

Among these latter, we briefly mention the position of Wells Fargo, the second largest Italian company in terms of market capitalization, which has repeatedly cited the risks and difficulties in monitoring the actual movements of the bitcoin price, in addition to highlighting how the presence of such an illiquid market is sufficient to stay away from cryptocurrency.

According to market rumors - not yet confirmed - the UBS Group has also chosen not to make Bitcoin products available to its customers, due to the typical volatility of virtual currency prices and high transaction costs (but against Swiss bank is very attracted by the possibilities of positively exploiting the blockchain). Finally, too Royal Bank of Canada he admitted he did not want to offer products linked to cryptocurrencies.

But what will be the impact of these decisions on the future of virtual currencies? Difficult to estimate it, at least for the moment. However, it seems that more and more institutions will go back on their steps, confirming or introducing their presence in the sector, in order not to miss the opportunities that this sector can reiterate ...