Bitcoin Industry

Wall Street Banks to Follow Goldman Sachs’ Bitcoin Trading Desk, Says Analyst

Rebecca Campbell | May 4, 2018 | 4:00 pm
Bitcoin
Bitcoin

Wall Street Banks to Follow Goldman Sachs’ Bitcoin Trading Desk, Says Analyst

Rebecca Campbell | May 4, 2018 | 4:00 pm

Most financial institutions have tried to stay away from the cryptocurrency market, yet with Goldman Sachs moving ahead and setting up what looks to be first bitcoin trading desk from a Wall Street bank, it’s likely that other banks will follow.

That’s according to Spencer Bogart, a blockchain venture capitalist and partner at Blockchain Capital.

Other Banks to Follow?

Now, however, with one Wall Street bank dipping their toes in the cryptocurrency market, Bogart believes that other banks will follow as they look to see what Goldman Sachs is doing. In an interview with CNBC’s ‘Fast Money,’ he  said:

“Most of these banks have heard about the numbers or seen the numbers that companies like Coinbase and Binance are putting up. There’s a real risk that some of those companies could overtake some of Wall Street’s biggest banks if they don’t get in the market.”

Interestingly, one bank that isn’t planning to follow in Goldman Sachs’ footsteps is British multinational investment bank Barclays.

This week, it was reported that Jes Staley, CEO of Barclays, had ruled out the launch of their own cryptocurrency trading desk for the moment. Earlier reports suggested that Barclays was carrying out an initial assessment to gauge client interest in the bank opening a cryptocurrency trading desk. According to Staley, though, cryptocurrencies like bitcoin present a ‘real challenge’ for them. The British bank has also compared the spread of the cryptocurrency market to that of an infectious disease.

Of course, with the market too large to ignore it, according to Bogart, it remains to be seen how much longer Barclays will keep up its position of not getting involved with the cryptocurrency market.

Earlier this week, it was reported that Goldman Sachs was taking steps to use its own money to trade with clients in a number of contracts linked to the price of bitcoin, reported The New York Times. Notably, though, while the Wall Street bank won’t be buying or selling the coins to begin with, a team at the bank is thinking about going in that direction if it can get regulatory approval. Goldman Sachs has also made its first hire in its cryptocurrency markets unit, signalling its seriousness in helping clients to invest in digital currencies.

Such a move from the bank highlights how far the market has come considering a few years ago the idea of Goldman Sachs, or any other bank, toying with the idea of trading bitcoin would have been an absurd notion.

 

Featured image from Shutterstock.
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  • Marc

    “Infectious disease”. Really? This from a bank that built its business selling Opium to millions of Chinese and in the modern era has been involved in dirty dealing in the Middle East and elsewhere. I’d say Barclays is an infectious disease that the world can do without.

    • Jordan Saltzberg

      I would love to know more about this opium business…

  • Rich Milly

    As we see more projects capture the public’s interested like Algebraix, we will see more institutions move in. This is a great move forward for this space

  • Bitcoin should be part of everyone’s portfolio. It continues to grow even though it went nuts a little bit in Dec causing a massive dip, it is on the way back up to where it should be. For more fun get into Alt Coins.

  • Joe Azarcon

    What they are now realizing is the result of decades of practice which left out savers in favor of debtors, who are now coming to fore due to abuse and neglect. Of course they know what is happening, and would like to get in before its is too late for them. They are not about to give up their crowns to the nascent crypto exchanges and miners if they can help it.

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