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Is Goldman Sachs Going to Enter the Crypto Market Soon?

goldman sachs

The blockchain is considered as a disruptor in today’s world. In fact, could you imagine a world wherein there is no need for third parties to confirm transactions? And for this reason, we’ve seen the meteoric rise of Bitcoin hitting almost $20,000 by mid-December of last year. And though there were efforts to regulate the market, it is true that
whales are also attracted to the crypto market.

Goldman Sachs gives us a hint that they are becoming serious regarding cryptocurrencies. Earlier this month, Goldman Sachs hired Justin Schmidt to lead its digital asset division. This move says that it is definitely taking a closer look at what cryptocurrencies can do. And though it still remains to not commit to digital currencies, this action seems the complete opposite.

A Big Move for Goldman Sachs

Schmidt was reportedly hired and started working for the bank on April 16. In a statement that was issued by Tiffany Galvin who works as Goldman Sachs’ spokeswoman, “In response to client interest in various digital products, we are exploring how best to serve them in the space. At this point, we have not reached a conclusion on the scope of our digital asset offering”.

Goldman Sachs has moved towards institutions investing in cryptocurrency. For instance, the bank has cleared bitcoin futures on behalf of clients. Goldman CEO Lloyd Blankfein has also announced last autumn that there is a chance that Goldman Sachs is going to provide crypto trading services.

There were reports last December that the bank had already decided to set up a trading desk in order to market its digital assets. In fact, the tentative launch is said to be by June this year. However, Blankfein later mentioned that the bank would merely just be clearing futures on Bitcoin.

An MIT Computer Science Graduate

Schmidt is a strong candidate for the bank mainly because of his background. He is an MIT computer science graduate. This could mean that Goldman is definitely moving towards its plan to provide services for the digital currency market.

Expect Big Players in The Future

There are those who believe that institutional trading is a necessity in order for cryptocurrencies to be adopted. There are efforts to convince US Securities and Exchange Commission to allow the first bitcoin exchange-traded fund. If this move becomes reality, it would definitely change the entire crypto market. Such move could bring $5 trilling ETF market. But of course, regulations should still be in mind before this becomes a reality. This would require the SEC to adjust a section of the 1934 Securities and Exchange Act.

If you will look at the entire crypto market today, it has been able to add more than $150 billion in value since hitting a low this month. And with big names planning to enter the crypto market, it seems that the future is actually bright for those who believe in blockchain technology. George Soros is among the biggest names planning to enter the market. Soros has been famous for shorting the British pound in 1992.

Mark Ayesa

Mark manages our editorial team, social handles and is always on the lookout for great writing talent to contribute to our site. On a day-to-day basis he ensures the content on CryptoCurrency365.com is of the highest quality and also carries out extensive research on any current hot topics of the crypocurrency world for our writers.

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