Swiss Banks think Bitcoin next days will be better

Representatives of two Swiss banks that offer bitcoin products, Falcon Private Bank and Vontobel Holding AG, are high on bitcoin’s future due to the pending introductions of bitcoin futures in the U.S., according to Bloomberg. The banks believe the futures contracts will usher in more digital currency products.

Cboe Global Markets Inc. will introduce its bitcoin futures on Sunday, while CME Group Inc. will offer a similar product on Dec. 18. Bitcoin hit a $17,000 record price on Friday, marking a 1,500 percent gain for the year.

Vontobel customers offer mixed opinions about the futures contracts, said Heiko Geiger, executive director of the Frankfurt-based bank. Some see the futures contracts as a path to mainstream financial markets, while others believe bitcoin is a bubble that will collapse.

Some investors want more liquidity in the market, which futures contracts support, while others plan to short sell bitcoin, he said. Overall, he said customers are bullish.

Vontobel offers a type of derivative called participation certificates that permit bets on the action of digital currency. Geiger said there is a lot of turnover in its bitcoin products. Falcon allows customers to invest in bitcoin directly.

Switzerland is establishing itself as something of a digital-currency hub. The Ethereum Foundation, which is behind the second-biggest cryptocurrency, is incorporated in the country, while the city of Zug last year piloted a project where users of government services were able to pay in bitcoin. 

This past March, the Crypto Valley Association launched, backed by the government, to support cryptocurrency startups and establish companies through policy recommendations, organizing conferences and hackathons, enabling researching programs and more.