In an interview, the Chief Operating Officer of Goldman Sachs said that Goldman Sachs is an investment banking group which is exploring cryptocurrency trading derivatives.
COO David Solomon said that the company is already assisting clients in publicly-traded derivatives. The company is considering some other activities also very carefully.
The company’s objective is “evolution and adaptation”.
The aim of the company is to evolve its business and adapt to the environment according to the cryptocurrencies.
Solomon claimed that “We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously.
We’re listening to our clients and trying to help our clients as they’re exploring those things too.”
As digital assets grew more and more popular, Goldman Sachs’ attitude changed towards cryptocurrencies.
In 2014, Goldman Sachs was not ready to accept Bitcoin as a cryptocurrency, but, three years later, the scenario got completely changed, for institutional investors it became more difficult to avoid Bitcoin and other cryptocurrencies.
In fact, in December of last year, there was a rumour that the company itself is opening its own crypto trading desk.
In early 2018, the investment group denied the rumours of a trading desk and the company’s position also got softened towards cryptocurrency.
In May, the company said that crypto is “not fraud” and disclosed their further plans of crypto trading.
According to Fundstrat head of research Thomas Lee, the recent decline in Bitcoin was caused due to futures expirations.
On June 9, the U.S. Commodity Futures Trading Commission (CFTC) requested trading data from crypto exchanges Bitstamp, Coinbase, itBit and Kraken as a part of an investigation into whether the platforms were engaged in activities that could constitute price manipulation when formulating the price of Bitcoin futures.
Goldman Sachs has always acquired the first position in the world of cryptocurrencies.
But, there is no rush in the firm for trading new products in the market.
The firm announced its crypto trading desk in May. At the time, the bank said that the desk would offer Bitcoin non-deliverable forward contracts. To start, it is a type of derivative.
The crypto site, Abacus Journal reported Goldman Sachs as “actively exploring the creation of a non-deliverable forward for ether”.
When it comes to certainty, it is not even clear whether Goldman could even build a product at the current time since futures for ether do not trade in any regulated exchange in US CBOE global markets.
For Goldman Sachs, as per the source, the clients are not really looking for new products.
But, it doesn’t mean that they are not interested in marketing.
They just want a guide, so, they call senior bankers and traders to know about necessary details regarding ripple futures and to learn how to make a move to enter into the market.
“I don’t believe any client has sought out crypto exposure,” Fink said in July. “I’ve not heard from one client who says, ‘I need to be in this.'”
So, it was all about how the company “Goldman Sachs” is exploring cryptocurrencies.
Here, we discussed all the necessary details regarding the company’s trade.
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eToro, a social trading platform, is set to establish an over-the-counter (OTC) trading service in London for digital currencies due to the increase in the number of interested institutional investors.
Yoni Assia, CEO of the company, said, “We are launching an OTC desk for institutions. We’ve seen more and more interest from corporates and institutions.”
The OTC desk will be launched especially for those investors that have huge funding capabilities. The brokers of the company will pool liquidity between numerous exchanges to settle all the orders. It has been providing trading services for crypto, stocks and other assets and deals with 15 virtual currency exchanges internationally. Currently, it is planning to launch its own crypto exchange.
Assia added, “We’ve actually set up our corporate team here in the UK to start setting up accounts to trade on eToro. We’ve announced that we’re launching the exchange as well so, between the exchange and the OTC desk, we’re also starting to serve more potential institutions and financial institutions.”
It should be noted that popular financial institutions were against digital currencies till 2018 but now are giving considerable attention to the technology. In order to expose traditional investors to crypto trading, CBOE and CME Group launched bitcoin futures at the end of 2017.
Amidst a steep downfall in the crypto market from $800 billion in December last year to $280 billion today, institutional players are still backing virtual coins.
Circle, a crypto start-up backed by Goldman Sachs and Cumberland Mining, a division of DRW have recorded a rise in institutional level participants. The former has started to trade digital coins on behalf of its clients while Fidelity and JPMorgan are also set to enter the space.
However, the CEO stated that it was still early to diagnose the amount of interest bigger investors have in the business but also claimed that few hedge fund owners have contacted him.
As per news from Financial News, bankers are in initial level talks with the trading platform for a possible IPO. Assia did not seem in a hurry when he said the discussions are still “in a standard course of business for a business that raised $100 million and significantly scaled its revenues.” He added that launching an IPO was not a mandatory step for the company. Bankers around the globe are keen on cashing in on people’s expectations towards virtual currencies.
Earlier this month, celebrated investor, Jay Edward Smith, stated that he admires the structure of social trading acknowledging it as a service that empowers small-time inventors. He also praised eToro and its community as he personally uses the platform.
His claims hold gravity as the investors is popular among young crypto enthusiasts. The statements can have a positive effect on such businesses for they are being marketed by someone respectful.
As of now, the trading firm a positive phase and is hoping to capitalize through its new trading exchange. If it gets successful in dealing with institutional players then nothing will be able to stop its growth as a top trading stage.…