Rumor has it that the largest bank in the United States Goldman Sachs planned on opening an institutional crypto desk. However, the rumor was broken by CEO David Solomon and in the latest cryptocurrency news today we read more about it.
Goldman Sachs CEO explained to the House Financial Services Committee hearing that the bank never had intentions on opening a crypto trading desk. During the hearing, Solomon explained that the bank never had a real plan to launch the trading desk but he blamed Bloomberg of expanding the rumor.
The Bloomberg story came at the perfect time during the bitcoin bull market in 2018 when Bitcoin reached $20,000.
“That Bloomberg article was not appropriate. Like others, we are watching, plus doing work to try and understand the cryptocurrency marketplace as it develops. We have some clients that have certain functionality that we’ve engaged with on clearing physically-settled futures. But other than that, we never had plans to open a cryptocurrency desk.”
Goldman Sachs CEO added that the bank may open a crypto trading desk in the future but currently is not the right time. He believes that the market is filled with con artists and issues that the crypto industry needs to fix first.
Initially, all of the bitcoin supporters were excited to hear the reports in 2017 about Goldman Sachs opening a trading desk since the bank has about $1.5 trillion under management. They believed that this could boost the price of bitcoin eve higher. During the crypto winter, almost every institutional bank started backing away from cryptocurrencies.
As one of the best cryptocurrency news sites previously reported, Travis Kling, a well-known fund manager believes that the bear market is history. He claims that the BTC rally was spiked by the growing distrust of the Federal Reserve. Kling even stated that he believes more people will choose bitcoin as they will lose trust in the Federal Reserve because of bad fiscal policies.
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