Bitcoin futures growth could prompt bank ratings downgrades

Fitch, S&P, Moody’s contemplate impact of bitcoin futures on credit ratings

Rating agencies are considering downgrading banks that clear bitcoin futures – and potentially even those just exposed to the contracts through their central counterparties – should volumes continue to increase on the new, volatile contracts.

Since the launch of bitcoin futures contracts in December, the cryptocurrency has seen a significant downturn. The price of bitcoin on the spot market dropped by 66% over a four-month period after the derivatives went live on CME Group and rival CBOE,