Goldman Sachs To Open Bitcoin Trading Operation
Goldman Sachs announced yesterday that they would be opening a bitcoin trading operation.
This is a 180 degree turn from where they were just a few months back saying that bitcoin and cryptocurrencies were too risky for them to invest in.
Then a few months later they started making trades on the behalf of clients via futures products.
Now, it looks like they will be buying and selling bitcoin with their own money.
The release can be seen here:
https://www.nytimes.com/2018/05/02/technology/bitcoin-goldman-sachs.html
Some specifics:
It was not clear when they would officially launch, but they did say that they were only going to be trading futures products initially.
They are also in talks to create their own bitcoin derivative called a non-deliverable forward contract which will be offered to their clients.
Before you get too upset though, they are also wanting to trade the underlying bitcoin as well.
Goldman said they have submitted requests to regulators and are currently waiting for their approval before they can invest in the underlying coin/coins.
What this means:
Overall, this is huge news.
It gives a ton of legitimacy to the space.
Goldman is often seen as the mecca of finance and them being one of the first Wall Street firms to get involved in cryptocurrency trading likely opens the doors for the rest.
Upon hearing this news, Dan Morehead of Pantera Capital had this to say:
"Goldman Sachs to Open a Bitcoin Trading Operation. Within just a few months all of Wall Street will be trading bitcoin."
(Source: https://twitter.com/dan_pantera/status/991828690311901186)
All of Wall Street within a few months?
Sounds pretty good to me.
This may be the first time in history that an asset class as big as cryptocurrencies isn't really owned by institutions.
For once, retail was in first.
Dan Morehead said it best:
"Blockchain is the first half a trillion dollar asset class that nobody owns."
(Source: https://twitter.com/dan_pantera/status/991828690311901186)
When he says "nobody" he means institutions.
If that is indeed the case, I wonder where we are on this curve:
Goldman getting on board likely ushers more of the like into the space. The latter half of this year could get crazy again folks.
Stay informed my friends.
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What’s crazy is this I was telling people about this months ago. I happen to have caught wind of the 440k bitcoin purchase they made at $5600 a unit.
They literally have the power to control the market as they see fit. If you thought you seen manipulation before. Wait until you see what comes next.
As long as they manipulate it up, that is fine with me. :)
There is no point manipulating up. I’d they manipulate the price it will be in both directions!
They are going to manipulate both ways. They're used to taking out stop-losses left and right.
Also, if decentralized exchanges ever get enough volume, they'll be able to front run them a la "Flash Boys"
That won’t always be the case. Say then need to fill a order at a certain prices. They have the power to crash down and hold until they get what they want.
Could cause for more headache
They can't manipulate cryptos, one has to account for these investments and report them as per SEC guidelines. All they can do it invest in a crypto hedge fund that plays in crypto markets. Money moving in and out has to be accounted for at banks and evidence has to checked by auditors. No banks are investing in crypto so far, only futures, if at all. And after volcker rule, trading using proprietary capital is very difficult for banks.
Man o Man are you going to be in for one hell of a surprise very soon.
Ok, i will wait for the surprise and more conspiracy theory.
Ever thought that you have been conditioned to believe small groups and not think out Maude the box. Trust you will be surprised.
They can't manipulate precious metals either right?
They may be manipulating every single market that is relatively illiquid compared to stocks and rates. And they may have taken exposure to bitcoin, although i highly doubt it, but probably only via futures, not actual bitcoins. They have to justify exposure to bitcoin futures to shareholders and regulators. And they have to justify exposure to actual bitcoins. In the absence of regulation, goldman buying 440k bitcoin at 5600 is plain fart and therefore no case of any market manipulation through it. There are plenty of other institutions that can manipulate bitcoin market, not goldman as things stand currently. If the US regulators wont drag them to court or fine them, shareholders will sue them or european regulators will fine them. They are not buying any bitcoin without it being regulated. There is no way to account for that purchase. Its not a fixed asset, its not an intangible asset, it has to be on their balance sheet somewhere. Goldman is a regulated listed financial entity mate!
They can only meaningfully manipulate the futures market at the moment.
Have you seen how people react to it.
That's the market not manipulation. Listen to @karamyog 's last comment seconding my point.
The futures market is directly correlated to the btc market. If you crash the futures you can then short btc until the prices equal out. And if you buy a whole bunch of futures you'll pump the btc market.
But they are not correlated. The futures market would have to be many magnitudes larger if one wanted to shock the btc market but even then this would not be direct manipulation. It would be the market opinion responding.
I suppose Goldman was bound to enter the space officially at some point. If there's money to be made, the men doing "God's work" were bound to show up.
Goldman was probably loading up the bags at that point. :-)
That's funny, and probably pretty accurate.
Always ask: Cui bono? ... ;)
BTC is going mainstream baby! Hopefully it will drag STEEM along to new heights 👍💰👍
i don't trust this Goldman Empire shit, all they do is for their own interest to make money and not for the Bitcoin promising future.
I posted about this as well, I agree it is big news with the potential to bring in a new sector of investors.
This is great news! This should spark more banks to follow and ultimately a big step for cryptos. Hodling with require much patience, but those who wait will be rewarded.
Great update, I love that quote. Once Goldman gets in all of Wall Street will join in for FOMO. In investor calls, analysts will be asking banks and hedge funds why AREN'T you trading bitcoin and bitcoin contracts/futures. As far as the graph is concerned. I think we're at the lower end right above the bear trap that we just came out of. We are nowhere near "the paradigm" of everyone and their grandma buying crypto with their 401k and IRAs. Bitcoin still has a long way to blow up. #bullish
That seems like a possible spot on the graph for sure. If that is the case, the next rally will make the rally to $20k look like child's play.
They have finally decided to stop being stupid and backwards and joined the 2nd internet revolution of the 21st century, this could be the start of something really big.
Regarding the graphic, at this point, i don't even know, some will say we are past the mania phase, other say we are past capitulation and returning to the mean, but since crypto currency adoption is still so small, i believe we are still in the awareness phase.
Agreed. Just looking at the graph everyone wants to say we already had the peak of the cycle. Though it may have been something more akin to the "bear trap" sell off listed just before the big run up. If that is the case, the next run would be gigantic.
They probably looked at the balance sheet of binance.
Ha, amazing what a little profits will do.
Since they will have a relationship with Poloniex (sister companies) they could really leverage that concept and business partnership.