Bitcoin Pops, Goldman Sachs Creeps Into Crypto

Goldman Sachs to Begin Bitcoin Futures Trading Within Weeks

Goldman Sachs, one of the biggest financial institutions in the USA, is set to launch a bitcoin trading counter, the New York Times reported on Wednesday, May 2.

Notably, Goldman brought on Justin Schmidt as vice president and head of digital asset markets in the firm's securities division. The financial institution has been rumored to have been planning the move since last December, but executives claimed the rumors were false.

Bitcoin enjoyed a little pop after news broke that Goldman Sachs was officially moving towards launching a bitcoin trading operation.

She further said that the organization has adopted a careful stance on the cryptocurrency and "I would not describe myself as a true believer who wakes up thinking Bitcoin will take over the world. We'd clear them. We're a prime broker and so if our clients are going to do it, we're going to go do it". Clients will not necessarily be trading the coins themselves, but they will instead be able to trade in a variety of contracts that are linked to the prices of cryptocurrencies such as Bitcoin.

The Wall Street heavy-weight also declared that the cryptocurrency "is not a fraud", according to a report by the New York Times.

However, the article continues, Yared beleive that "It resonates with us when a client says, 'I want to hold Bitcoin or Bitcoin futures because I think it is an alternate store of value'". It is not a new risk that we don't understand. In November a year ago, the CEO of Goldman said that bitcoin trading is a "Vehicle to perpetrate fraud".

While details remain sketchy, direct buying and selling Bitcoin will not be Goldman's first port of call. Bitcoin has rallied in recent weeks, trading pretty consistently above the $9,000 mark.

Images courtesy of Shutterstock, Goldman Sachs, and Pixabay. Let us know in the comments section below.

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