RATE Group | Bitcoin Futures Could Spur Bank Ratings Downgrades
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Bitcoin Futures Could Spur Bank Ratings Downgrades

13 Jun Bitcoin Futures Could Spur Bank Ratings Downgrades

Posted at 03:37h in Bitcoin News by

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Rating agencies may downgrade banks that clear bitcoin futures if these financial products continue to see increasing volumes over the coming months.

Financial publication Risk.net reports that each of the three large rating agencies — Standard and Poor’s, Moody’s, and Fitch — have expressed concern over increasing volume in bitcoin futures markets, which are currently available on regulated US exchanges CME and CBOE.

As CCN reported, volume in these markets has grown steadily since their December launch, and combined bitcoin futures trading volume has exceeded $670 million during a single trading session. This increasing volume has helped lend legitimacy to this nascent asset class, but it has rating agencies worried that banks are taking on unnecessary credit risk.

While still too low to be a major concern, rating agencies said that, due to the volatility of the

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