Maybe Goldman Sachs Isn't So Keen On Crypto, After All

Roman Schwartz
September 7, 2018

The announcement and subsequent media coverage appeared to send the price of Bitcoin and other digital coins into a decline - but some argued this was purely coincidental due to other factors.

Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. However, while speaking at the ongoing TechCrunch Disrupt 2018 conference, Goldman Sachs chief financial officer Marty Chavez called the claim "fake news".

Goldman Sachs first announced plans to start a crypto trading desk late past year, but, at least for now, those plans are on hold.

As CCN reported, Goldman Sachs CEO Lloyd Blankfein repeatedly denied that the firm had any plans at all to launch a bitcoin trading desk, nearly up until the day that the bank revealed that it had been quietly assembling such an operation.

According to a report by Business Insider, sources familiar with the situation confirmed that the investment bank had run into a "regulatory roadblock" in its bid to launch a crypto trading desk.

"A lot of retail investors' hopes for a bigger institutional presence were really being driven by Goldman Sachs".

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The CFO continued by reaffirming Goldman Sachs' exploration into the Bitcoin market, suggesting that interest into the area from the bank's clients has been high, and they are keen to have tradeable Bitcoin products in the near future. Do your market research before investing in cryptocurrencies.

The response to this news has been swift and negative.

The price of ethereum has plunged almost 20 per cent in 24 hours and is now down 1.56 per cent on the day to around $229.08, while litecoin and ripple both shed more than 7 per cent of their value in recent days.

In December last year bitcoin was trading at $19,000, but by June this year bitcoin's price had fallen 6.2 per cent to $5,887.

"The next stage of the exploration is what we call non-deliverable forwards, these are over the counter derivatives, they're settled in USA dollars and the reference price is the bitcoin-U.S. dollar price established by a set of exchanges", Chavez. Its low point is around $5800 for the year; will we see that in September?

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