A potential move by global brokerages to offer products around cryptocurrencies could have a big impact on the wider market, analysts at Bank of America Merrill Lynch says.
In a research note entitled "Introducing cryptocurrencies – what are they good for?" the analysts tackle Bitcoin (Bitcoin) and other cryptocurrencies such as Ethereum (ETH/USD) and XRP. The note both covers the basics of the market and dives more specifically into the growing galaxy of open blockchain networks in operation today.
The report touches upon the possible factors that could shape the cryptocurrency market's future progression – including financial products based on the tech.
"The coin universe is dynamic and innovative and volatile; while a true value for cryptocurrencies may be impossible to assess, one factor which we believe could affect their liquidity and market capitalisation would be if one or more global broker/dealers decided to offer institutional-like products," they wrote.
According to analysts, it remains far from certain how the market will develop in the months to come.