Japanese brokerage giant Nomura Holdings has started offering Bitcoin derivatives to its institutional clients due to high demand. The decision comes just at a time when Bitcoin (BTC) has been going through a rough phase and is trading below $30,000.
Nomura shall be offering Bitcoin non-deliverable forwards and non-deliverable options settled in cash. Thus, its clients can start trading Bitcoin futures and options in the market.
As per the Bloomberg report, Nomura carried out the first trade earlier this week on CME Group Inc.’s platform. It has also partnered with market-maker Cumberland DRW LLC. Tim Albers, head of forex structuring in Asia ex-Japan, said:
There has been significant volatility recently. Once the dust settles, valuations will become more attractive for institutional clients. We’re pretty excited to get this off the ground” as the launch “marks the start of our journey into the space” for the global markets business.
Nomura’s Expansion in Crypto
Earlier this year, Japanese banking giant Nomura revealed its intensions to get into crypto. Acting on the same lines “tapping resources within its Singapore-based foreign exchange” for crypto expansion in global markets.
However, the decision to expand in global markets comes at a very critical time. The crypto market has eroded more than $300 billion of investors’ wealth over the last 45 days. As a result, crypto is likely to face growing scrutiny from policymakers across the globe.
On the other hand, the global macroeconomic conditions aren’t favorable to rypto investors. The Federal Reserve is likely to go aggressive with interest rate hikes this year to control the soaring inflation. At the same time, the chances of a recession in the U.S. are higher if it reports a second consecutive quarter of negative GDP.
“We expect the sector to mature over time, to become more regulated, which makes it more attractive for institutional investors,” Albers said. “As a result, volatility should reduce over time.”