Bitcoin futures may negatively affect the credit rating of banks

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bitcoin futures

There is an opinion that rating agencies can lower the status of banks that clear Bitcoin futures if the trading volumes continue to rise.

It is known that this concern came from representatives of three major rating agencies – Standard & Poor’s, Moody’s, Fitch. It is these institutions that have expressed concern about the increase in the Bitcoin futures market, which are currently on the United States’ regulated trading platforms – CME and CBOE.

Despite the fact that this issue is not currently a huge problem, rating agencies claim that the volatility of the Bitcoin exchange rate can negatively affect the creditworthiness of banking institutions that offer their clients a futures clearing service for Bitcoin.

Nathan Flanders, head of Fitch Ratings, said that the impact on the ratings is what, in the opinion of the company’s representatives, is undervalued by the market, and also what needs monitoring for further development. In the event that the importance of this financial instrument will increase, the dialogue between Fitch Ratings and banks will be built more rapidly. Flanders also noted that even if some banks claim that they are not directly involved in trading with cryptocurrencies as representatives of clearing activity, they are still considered to be involved in this.