As Bitcoin prices soared following the election, big banks are reportedly accruing $1.4 billion from futures contracts.
Wall Street banks are sitting on post-election gains worth $1.4 billion as Bitcoin prices soared, according to estimates from Forbes.
Big banks reportedly piled into Bitcoin (BTC) futures contracts in the weeks before the presidential election, amassing a total of 10,564 new contracts, equal to 52,820 BTC. The analysis is based on data from the Commodity Futures Exchange Commission (CFTC) released on Nov. 5.
Bitcoin futures contracts are financial derivatives products that allow traders to speculate on the cryptocurrency’s future price without actually owning it. While most United States banks are not allowed to hold Bitcoin directly, they can get exposure to its price fluctuations through derivatives and exchange-traded funds (ETFs).
