Citigroup is preparing for CME Bitcoin futures trading

U.S. banking giant Citigroup is awaiting regulatory approval to start trading CME bitcoin futures first, followed by bitcoin exchange-traded notes, according to a source familiar with the matter. In June, Citigroup launched a business unit to offer cryptocurrency-related products under the bank’s wealth management umbrella.
U.S. banking giant Citigroup (NYSE: C) is awaiting regulatory approval to begin trading bitcoin (BTC, -1.76%) futures contracts on CME Group (CME), according to an unnamed source at the bank.
The bank is said to be responding to surging demand from clients for cryptocurrency exposure as Bitcoin once again climbs towards $50,000. Citigroup, which is still awaiting the necessary regulatory approvals, will join another major bank, Goldman Sachs, in offering Bitcoin futures trading.
Another person familiar with the cryptocurrency derivatives market said that Citi is actively recruiting experts to join a cryptocurrency-focused team in London, adding:
“The team is likely to receive approval to begin trading CME Bitcoin futures first, followed by Bitcoin exchange-traded notes (ETNs).”
“We are carefully thinking through the approach we will take given the many issues surrounding the regulatory framework, regulatory expectations and more,” a Citigroup spokesperson told CoinDesk via email. “We are currently considering offering products such as futures to some of our institutional clients because these products operate under a strong regulatory framework.”
In January, CME took the top spot on the list of the largest Bitcoin futures trading platforms, indicating a continued rise in institutional participation.
More and more big banks are beginning to get involved in cryptocurrencies, often through cash-settled products that track the price of cryptocurrencies. In July, CoinDesk reported that the prime brokerage arm of a U.S. bank began clearing and settling cryptocurrency exchange-traded products (ETPs) for European hedge funds.
Citigroup is one of the largest banks in the United States, holding approximately $23.7 trillion in custody assets. In June, Citigroup launched a business unit to provide cryptocurrency-related products under the bank's wealth management. In May 2021, the Financial Times reported that Citigroup was weighing cryptocurrency trading and custody.
During the last crypto bull run in 2017, Citibank’s UK brokerage platform began offering clients access to the ETH (-3.1%) ETN. But as bitcoin prices fell in 2018, demand for the product fell and it was shelved.