Bloomberg Endorses Bitcoin By Listing Prices For It's News Subscribers
More Than 320,000 Subscribers to the Firm's Terminals Will Now Have Access to Bitcoin Prices
Bloomberg LP plans to list bitcoin prices on its financial data terminals, a move that could give the volatile digital currency a stamp of respectability and spark interest in U.S.-based trading platforms.
According to a blog post on Bloomberg's corporate website, the more than 320,000 subscribers to the firm's terminals will now have access to bitcoin prices from Kraken and Coinbase, both of San Francisco. Kraken bills itself as a bitcoin exchange while Coinbase, which provides payment processing for merchants and digital wallets for individuals, functions more as a broker-dealer.
Bloomberg LP plans to list bitcoin prices on its financial data terminals, a move that could give the volatile digital currency a stamp of respectability and spark interest in U.S.-based trading platforms.
According to a blog post on Bloomberg's corporate website, the more than 320,000 subscribers to the firm's terminals will now have access to bitcoin prices from Kraken and Coinbase, both of San Francisco. Kraken bills itself as a bitcoin exchange while Coinbase, which provides payment processing for merchants and digital wallets for individuals, functions more as a broker-dealer.
One person familiar with Bloomberg's decision said it was made in response to requests from hundreds of customers wanting access to bitcoin prices. The facility, which allows users to chart prices, has been in development since last year.
"While bitcoin and other virtual currency markets are still nascent, they represent an interesting intersection of finance and technology," wrote Tod Van Name, Bloomberg global head of fixed income, currencies and commodities in the blog post. "Given that Bloomberg sits squarely at that intersection, providing pricing for this underdeveloped market is a natural fit for us."
"While bitcoin and other virtual currency markets are still nascent, they represent an interesting intersection of finance and technology," wrote Tod Van Name, Bloomberg global head of fixed income, currencies and commodities in the blog post. "Given that Bloomberg sits squarely at that intersection, providing pricing for this underdeveloped market is a natural fit for us."
Bloomberg competes with Dow Jones, publisher of The Wall Street Journal, in news and other areas. Dow Jones is owned by News Corp.
In relaying prices from the two exchanges, Bloomberg's move doesn't enhance or standardize existing prices like a newly engineered index from multiple price feeds would. The financial data provider said its move didn't amount to an endorsement or guarantee of bitcoin and that customers wouldn't be able to trade the digital currency on a Bloomberg terminal.
Still, investors could welcome the news as a vote of confidence in bitcoin, which has seen its price halved since December following a string of negative developments.
Bloomberg terminals, a fixture on trading desks across Wall Street, are a key part of the trading infrastructure used by banks, hedge funds and other deep-pocketed professional investors, a group whose money could bring significantly more liquidity to bitcoin trading.
"On Wall Street, an investible asset class is considered to be something that's quoted on the Bloomberg terminal," says Barry Silbert, chief executive of SecondMarket Inc., which launched a bitcoin investment fund in September. He has predicted once Bloomberg quotes a bitcoin price it would open it the currency up to "substantial institutional investor interest."
The blog post hinted that more bitcoin products could be in the works, telling readers to "stay tuned for more." It wasn't clear whether a price index, trading functionality or some other enhancement was under consideration.
Bloomberg terminals, a fixture on trading desks across Wall Street, are a key part of the trading infrastructure used by banks, hedge funds and other deep-pocketed professional investors, a group whose money could bring significantly more liquidity to bitcoin trading.
"On Wall Street, an investible asset class is considered to be something that's quoted on the Bloomberg terminal," says Barry Silbert, chief executive of SecondMarket Inc., which launched a bitcoin investment fund in September. He has predicted once Bloomberg quotes a bitcoin price it would open it the currency up to "substantial institutional investor interest."
The blog post hinted that more bitcoin products could be in the works, telling readers to "stay tuned for more." It wasn't clear whether a price index, trading functionality or some other enhancement was under consideration.
According to an index from news site Coindesk, bitcoin's price soared last year from $13.51 at the end of 2012 to an all-time high of $1,151.30 on Dec. 4. That was driven in part by increased adoption as businesses world-wide began accepting payments in the digital currency and as U.S. regulators signaled an unexpectedly accommodative stance toward the new technology.
But since then, the price has fallen sharply amid concerns over a crackdown in China, a hacking attack that briefly crippled the digital currency's core network, and the collapse of Tokyo-based Mt. Gox, once the dominant bitcoin exchange.
Monty Henry, Owner
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