Goldman Sachs to relaunch its crypto trading desk as the industry rushes forwards at fast rates so let’s find out more in our latest cryptocurrency news.
The reports from Reuters reveal that the multinational investment bank Goldman Sachs considers offering BTC futures and non-deliverable forwards on behalf of the clients starting in seven days. According to sources, the move is only a part of the bank to try and take advantage of the fast-growing crypto space which is becoming an investment of choice for the institutional players. The bank is also considering developing a Bitcoin Exchange-traded Fund as a part of its commitment to fully venture right back into the crypto industry.
Based on this regard, the unnamed source noted that Goldman Sachs already issued a request for information to expose digital asset custody as back in 2017, the bank was the first Wall Street company to consider offering crypto-related products as the bank was planning to open crypto desks. During that time, the financial institution was working on addressing security challenges that were associated with the business as well as how it will custody these assets.
The plans were set for a launch in 2018 when reports emerged back in September that same year as the banks chose not to offer crypto-related investments. Sources said that the bank dropped the crypto plans due to the regulatory concerns that were associated with the industry and the regulators stepped down from most projects. The issue of the regulatory uncertainty was the major stumbling block that hindered a few institutional players from getting involved with the cryptocurrencies as well so there were even clearer regulations in times that lured institutional investors like Tesla or Microstrategy.
The entrance of these large corporations gave other institutional investors approval that crypto is safe compared to what it was in 2018. For Goldman Sachs to relaunch the crypto trading desk, this could be the main reason why. However, the banks’ second shot at doing it comes less than a year when it told the clients in a conference call that BTC and other cryptocurrencies are not an asset class. The reports at the time suggested that a part of this reason for the call was to discourage the customers from including BTC in their portfolio.
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