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Goldman moves away from trading desk plans, still intends to create a custody service
Institutional investments have long been considered the future of this sector, as optimists argue that the interest of companies of Wall Street will drive the growth of this market sector at an early stage. But in an unexpected quip stop, as reported by Business Insider, Goldman Sachs, unquestionably one of the most respected companies in today's business, has just given up his plans to set up a Bitcoin trading desk (19659003). As reported by Ethereum World News in October of last year, the Wall Street giant hinted that he was planning to offer trading with Bitcoin (BTC), but now it seems that this plan has been completely canceled.
According to those familiar with the issue, this will be a temporary move, as the company will delay these plans for "the foreseeable future". When asked about why this trend reversal took place, insiders have noted that regulatory uncertainty regarding this asset class is postponing Goldman's best successes.
This decision will also see Goldman moving plans to open a lower desk on the scale of the encrypted products that the financial giant intends to offer. But, as already mentioned, this line of arrest will probably be only temporary, as those familiar with the issue have noted that this decision could be reviewed in the near future if the regulatory climate improves.
One of the insiders also noted that company executives conclude that "many steps still need to be taken, most outside the control of the business", before a & # 39; company like Goldman can make a legitimate foray into cryptocurrency trading.
A representative of Goldman Sachs commented on the issue, reiterating a statement that was made in August:
"In response to the customer's interest in various digital products, we are exploring the best way to serve them in space. this point, we have not reached a conclusion on the scope of our digital resource offering. "
However, not all news is bad, as reportedly Goldman is still making moves to set up a crypto-custody service for his bigwig customers. Many cite the lack of adequate custody solutions as the main reason why institutions are reluctant to enter this market, so a full-fledged custody service could prove to be a long-term resource for the encrypted market in its complex. [19659003] In addition, the finance company still intends to make sure that its customers can exchange BTC futures, as reported by Ethereum World News in May. But as suitably referring to Brian Kelly, CNBC commentator and CEO of BKCM, many opponents could ignore the fact that custody and futures are still available and focus on the "negative" trading desk news.
CNBC states that this news was the catalyst that reduced the cryptocurrency market by more than 7% in a few hours, but because of the unpredictable and volatile nature of this nascent market, some believe that this was just a coincidence untimely.
At the time of writing, Bitcoin fell to $ 6,900 and decreased by 6% on the day.
Photo of Wes Hicks on Unsplash
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