Cryptocurrency & Blockchain Business

One in five financial firms say they may start trading cryptocurrencies within the next 12 months

One in five financial sector firms are considering trading cryptocurrencies in the next 12 months according to a Thomson Reuters survey.

Of those who were willing to trade cryptocurrencies such as Bitcoin or Ripple, 70 per cent said they would begin trading in as soon as three to six months, the survey revealed.

Published on Tuesday, the survey comes after the once-dark world of cryptocurrencies hit the mainstream late last year when the value of one Bitcoin, the best known digital cash, surged to almost $20,000.

It has dropped sharply since reaching such lofty heights, dropping as low as around $6,000 before climbing back up to $9,300 as the end of April approaches.

These sharp swings in value have not put off significant a portion of professional investors working for some of the biggest banks, asset managers and hedge funds.

The survey covered more than 400 Thomson Reuters professional clients.

While nothing can be certain in cryptocurrency, the findings suggest that professional traders and financial firms are now taking it seriously and see money to be made.

Retail interest in the buying and selling of digital coins exploded last year after prices skyrocketed, and institutional involvement has been predicted to grow. 

The growing interest has continued despite regulatory warnings that cryptocurrencies are highly risky and prone to scams.

Banks are examining client interest and some hedge funds have already tried their hand trading virtual currencies.

Large falls in cryptocurrency prices earlier this year saw critics warn that the market is a bubble that investors should stay away from. 

Thomson Reuters, the parent company of Reuters News, provides data and news to the financial services industry.

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