Goldman Sachs reopens Cryptocurrency Trading Desk

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Goldman Sachs Group Inc (NYSE: GS) is going to reopen its cryptocurrency trading desk. Starting next week, it will provide Bitcoin (BTC) futures and non-deliverable forwards (NDFs). According to those familiar with the matter, Goldman Sachs is considering offering Bitcoin exchange-traded funds (ETF) as well. Moreover, it is exploring the potential of digital asset custody.

According to Reuters, the team behind the trading desk will sit within the firm’s Global Markets division. Goldman Sachs decides to relaunch cryptocurrency trading desk thanks to the Bitcoin boom and its increasing adoption. As the digital assets sector is growing rapidly, Bitcoin has been embraced by institutional investors, with big names showing interest in BTC investments. Japanese e-commerce and online retailing company Rakuten Inc (TOKYO: 4755) are some examples.

Citigroup Inc (NYSE: C) has laid out a case for BTC to play a bigger role in the global financial system as well. As Citigroup announced, they believe Bitcoin could become “the currency of choice for international trade” in the years ahead.

As of the press moment, Bitcoin is trading at $48,970. Its market capitalization has reached $916 billion.

Now the Right Time?

Goldman first launched a cryptocurrency trading desk back in 2018. However, at that time, BTC price was plunging, which did not encourage interest in the currency at all. Additionally, the regulatory situation in the US was still a gray area when it came to digital assets. Therefore, Goldman Sachs abandoned its plans, announcing that BTC was “not an asset class” and “not a suitable investment”. Instead, the bank decided to focus on cryptocurrency custody service.

It appears now it is the right time for Goldman Sachs to get back to its original plans. Earlier this year, the Global Head of Commodities Research in the Global Investment Research Division at Goldman Sachs, Jeff Currie, said that the Bitcoin market is “beginning to become more mature.”

Currie said: “I think in any nascent market you get that volatility and those risks that are associated with it.”

Even Peter Schiff, one of biggest Bitcoin’s critics, has admitted that Wall Street has changed its stance on the cryptocurrency. He said: “I find it interesting that major Wall Street firms, that loaded up on subprime mortgages and were completely blind-sided by the 2008 financial crisis, that would have gone bankrupt but for Fed bailouts, now advocate buying #Bitcoin to profit from the Fed’s bailout of the economy.”

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