It has been confirmed that Goldman Sachs is taking its greatest leap into the crypto space yet. The Wall Street banking giant is set to hold cryptos on behalf of funds betting in bitcoin. For a while, speculations have been rife that Wall Street has its eyes on cryptocurrencies, an idea that spurn from Goldman Sachs interest in digital assets. Well, it finally is happening!
The revelation changed the tone of analyses on the future of bitcoin. Analyst’s sentiments now point at positive market movements towards the Bull Run. This is occasioned by an increase in investor interest. Previously, bitcoin has dominantly been pushed by retail investors who mostly drove a speculative market. As a result, bitcoin has had explosively volatile prices. Volatile prices generally lead to high possibilities of loses. With the entrance of big wigs like Goldman Sachs however, things are set to take a turn around.
To begin with, such a fund will help mitigate and cushion investors against extreme loses. This in turn makes the industry impressive and viable to financial investors. Uptake by financial investors will also reduce price volatility. In the long run, the coin will become attractive as it attains some level of stability and becomes a true store of value. This will consequently open up other crypto based ventures.
A Goldman Sachs spokesman had earlier said that its venture into crypto world was not well charted out but is sure it is headed at a positive crypto adoption. Speaking earlier, he reported that their recent actions were informed by customer needs. According to the revelation, there is a high demand for crypto services from their customers. As a result, they are taking steps towards meeting these needs. They are exploring various digital products and the means to attain them. He confirms that they at the moment don’t have a clear framework on the scope on digital assets offerings but are right on it.
Currently, Goldman Sachs offers bitcoin trading futures. It was rumored in May that it would be setting up a trading desk. The New York Times reported this terming it as what would be the first Wall Street bank to open a cryptocurrency trading desk. An inside source intimated to Bloomberg that there is still no clear timeline for the launch for the fund to be put in place.
The year has been a rough one for bitcoin and other general cryptocurrencies. It has seen deep fluctuations with a low dip top $6000 in June. Briefly in July, bitcoin prices picked again to $8000 before dropping again to the current $6500 at the time of this writing.