Economy

Goldman Drops Plans for Crypto Trading Desk

Goldman Drops Plans for Crypto Trading Desk”

"We are clearing some futures around Bitcoin, talking about doing some other activities there, but it's going very cautiously". Rumors that Goldman Sachs was preparing such a trading desk first surfaced as far back as October 2017.

However on stage at San Francisco's TechCrunch Disrupt Conference, Goldman Sachs' Chief Financial Officer Martin Chavez asserted that reports about a rollback from a trading desk for cryptocurrencies was fake news.

Last 24 to 48 hours the fall in cryptocurrency prices across the board has been associated with the Goldman Sachs stance on cryptocurrencies trading.

His comments came after Business Insider issued a report on Wednesday, suggesting the financial services giant would be scrapping its plans to trade cryptocurrency.

In recent weeks, Goldman executives have concluded that many steps still need to be taken, a lot of them outside the bank's control, before a regulated bank would be allowed to trade cryptocurrencies, the financial news website reported.

According to a report by Business Insider, sources familiar with the situation confirmed that the investment bank had run into a "regulatory roadblock" in its bid to launch a crypto trading desk. "In response to client interest in various digital products, we are exploring how best to serve them in the space".

What are your thoughts on the latest from Goldman Sachs? One crypto writer, Tanya Abrosimova, said that the drop could be attributed to attempts to regulate the global crypto market, which may have spooked investors. Institutional and wealthy investors are likely looking for regulation support and legal protections before pouring money in. "They were not a part of the ecosystem yet, but to the extent that they represent the institutional herd, this is a negative", Kelly added. The overall market has lost around 18% of its capitalization in just the half-day after the announcement.

Goldman Sachs, however, isn't saying anything definitive for now.

"The next stage of the exploration is what we call non-deliverable forwards, these are over the counter derivatives, they're settled in USA dollars and the reference price is the bitcoin-U.S. dollar price established by a set of exchanges", Chavez. Will we see a price correction from this big drop?

For Ethereum, the second largest coin by market cap, this is the low point of the year.



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