Bitcoin exchanges suddenly have new competition on July 13 as authorities in Switzerland have approved the first private bank to begin conducting asset management programs for their clients in Bitcoin.
According to Reuters, private bank Falcon announced Wednesday that it would immediately begin storing and trading bitcoins on behalf of its wealthy customers via the bank's cash holdings, a move that signals the traction the virtual currency is gaining even in slow-changing asset management.
Falcon received approval from Swiss regulators, marking the first time they’ve authorized a Swiss private bank to work with bitcoin, according to CNBC. The decision could prompt other global regulators to loosen restrictions on bitcoin, potentially launching the the global cryptoasset-management industry in earnest.
The decision follows the CFTC's approval last week of the first bitcoin Swap Execution Facility in the US, which opened the door to centrally-cleared bitcoin options and other derivatives that would make it easier for CTAs and hedge funds to speculate on the cryptocurrency. - Zerohedge
As more and more mainstream financial centers begin to adopt Bitcoin and other cryptocurrencies into their client's portfolios, the potential grows for markets to seize the initiative to financialize Bitcoin just as they have every other asset class. And with so few Bitcoin expected to be produced over the next few decades, the easier it will be for big money to come in and swallow up the lion's share of the market, and turn the cryptocurrency into a monstrosity far beyond the ideals set forth by its founder.