Goldman Sachs to reboot crypto trading desk this month

Goldman Sachs is reviving virtual asset trading in the wake of an increase in the value of Bitcoin (BTC) — the most popular virtual asset in the world — making the banking powerhouse the latest prominent entity to adopt cryptocurrencies.

Goldman Sachs will start offering Bitcoin futures as it promotes other products this month after it scrapped a similar undertaking in 2018, according to a source who asked not to be named because the initiative hasn’t been formally disclosed.

As part of the crypto desk restart, Goldman is also evaluating the prospects for a bitcoin exchange-traded fund (ETF) and has made a request for details to enable the bank to have a solid grasp of crypto asset management.

Ventures in blockchain and CBDC

The digital trading operation is part of Goldman Sachs’ campaign to harness the potential of the fast-growing crypto-assets sector, which will also include ventures in blockchain technology and central bank digital currencies (CBDC).

By the end of 2020, the bank’s global markets unit became the largest in terms of revenue and assets. It will function as a market-maker, procuring and selling securities on behalf of clients.

Crypto did not make much sense to most banking giants during its early days. In fact, major banks like Goldman Sachs ignored it but are now earning the confidence of investors as other noted financial groups adopt its use.

BTC: An established asset class

A wave of institutional adoption has helped prices of bitcoin to climb to new peaks this year, although not without the normal volatility.

“There’s little question that Bitcoin is increasingly being adopted as an established form of asset,” Forbes quoted Anatoly Crachilov, co-founder and chief executive of Nickel Digital Asset Management, as saying in a note on Monday.

Bitcoin has risen nearly 10% in the past 24 hours, but the most sought-after digital asset is still almost a quarter lower compared to the record high it reached a few days ago.

 

Image courtesy of CNBC/YouTube Screenshot

Micky is a news site and does not provide trading, investing, or other financial advice. By using this website, you affirm that you have read and agree to abide by our Terms and Conditions.
Micky readers - you can get a 10% discount on trading fees on FTX and Binance when you sign up using the links above.