Wall Street trading firms are a cautious lot, but they can't keep their eyes off of bitcoin. Big trading and investment houses don't want to miss out on possible profit opportunities as bitcoin continues to grow.

More of the big proprietary trading firms are dipping their feet into bitcoin, thanks to the profit opportunity it can offer and its ability to streamline transactions, according to an article in The Wall Street Journal. The growing interest of Wall Street trading and investment firms serves to raise Bitcoin's profile in the investment community and the economy at large.

"Their involvement could help reduce the volatility in the market for bitcoin, which has

More traders enter the fray

DRW Holdings LLC, a Chicago-based trading firm, is a founding investor in Digital Asset Holdings that launched last month.

Cumberland Mining & Materials LLC, a DRW subsidiary, has begun to experiment with cryptocurrency trading.

Citadel Securities LLC in Chicago and KCG Holdings Inc. in Jersey City, N.J. were among the firms that offered to buy shares of the Bitcoin Investment Trust (BIT) which listed last month on OTC Markets. OTC Markets serves as a trading platform for companies that are less regulated than stocks listed on stock exchanges. BIT holds bitcoin in a fund that issues shares to SEC-accredited investors.

Wedbush Industries, a Los Angeles-based investment bank, also sought shares in BIT, which it sees as a good place to get started with bitcoin, a company spokesperson said.