Goldman Sachs, the multinational investment banking firm has finally made its stance clear on opening a cryptocurrency trading desk.
According to the bank, “Such plans are not a priority right now and the bank would rather focus its energy on a custody product for crypto that would better cater to large institutional clients.”
This latest development as reported by the Business Insider comes as a surprise to many, as there have been rumors making rounds for quite some time suggesting significant progress made by the firm towards the establishment of a direct crypto trading desk.
The rumors were based on significant developments last year that pointed towards the realization of such plans. One such move was the decision by the bank to hire seasoned cryptocurrency trader, Justin Schmidt, which sparked off wild speculations.
Despite the uncertainty hanging over the launch of a crypto trading desk, there’s some strong suggestions from within that suggest some relevant interest on the subject matter. This includes a comment from a spokeswoman from the bank on how they are working to meet the demands of their clients who have expressed interest in cryptocurrencies.
Goldman Sachs dispels rumors about its foray into the crypto market
There has always been a veil of uncertainty hanging over the progress made by the bank in this area. However, bank’s chief executive, Blankfein tried to clear the air and bring some level of clarity. In an interview to CNBC in January 2018, he said that the role being played by his bank was to clear the future of Bitcoin for some of their future clients.
However, he distanced the bank form any principle Bitcoin business that involved market making for the cryptocurrencies.
This latest report from Business Insider will finally put to rest, at least for the time being the speculations surrounding Goldman Sachs’ role in the crypto market. It is understood that the uncertain nature of the crypto market is main reason that has deterred the bank form getting involved in the cryptocurrency market as yet.
Need for an ETF for cryptocurrencies
Goldman Sach’s priority at the moment seems to be focused around providing safe custody to cryptos for large institutional clients who are trying to get a foothold in the crypto market. This will provide safety for these institutions who are more interested in the safety of their funds considering the volatile nature of the crypto market.
This is more in line and tune with the introduction of an Exchange-traded Fund (ETF) for cryptocurrencies. It’s still not clear whether there is a consensus among the bank and the U.S. Securities and Exchange Commission (SEC), which has been reluctant so far in the approval of a Bitcoin ETF. The SEC has indicated that it will not approve cryptocurrency ETFs until the markets demonstrable stability and security.
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