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Goldman Sachs to Launch Bitcoin Trading Desk, Hires first Cryptocurrency Trader

Tags: Bitcoin, Cryptocurrency, Goldman Sachs.
Posted on 07 May 2018 by "T".

Goldman Sachs, one of the biggest financial institutions in the United States, will launch a Bitcoin trading desk, saying that Bitcoin ‘is not a fraud', and it announced its plans to eventually buy and sell cryptocurrency, according to a report from the New York Times on Wednesday, May 2.

In a dynamic move that will set the investment banking giant apart from its Wall Street rivals, Goldman Sachs shall begin this plan by offering a variety of contracts with Bitcoin exposure prior to entering the trading arena, by means of utilizing its own funds.

Rana Yared, a Goldman executive tasked to watch over the creation of the trading operation, said that the bank had been ‘inundated' with requests from interested clients.

Amidst the skepticism on this decision, the bank received enough interest from endowments, hedge funds and other institutional investors that its board of directors voted to approve the move that will make Goldman Sachs to become the first-ever major American bank to utilize its own funds in order to trade cryptocurrencies or derivatives of cryptocurrency.

She told NYT, "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."

As a response to a past statement in which competitor JPMorgan CEO Jamie Dimon's infamous labeling of Bitcoin that it is a fraud and other chief bank executives called it nothing more than a speculative bubble, Ms. Yared said that Goldman "had concluded Bitcoin is not a fraud."

Nevertheless, even if it was publicly announced by Goldman CEO Lloyd Blankfein during its all-time price highs back in December 2017 that Bitcoin "is not for him", Ms. Yared was quick to dispel any speculations that the bank was a ‘Bitcoin believer' and explained that many of the people involved with the operation still remain skeptical of the cryptocurrency.

She said, "I would not describe myself as a true believer who wakes up thinking Bitcoin will take over the world. For almost every person involved, there has been personal skepticism brought to the table."

In time, the bank is hoping that it will get regulatory approval from the Federal Reserve and state-level authorities to start trading actual Bitcoins (ironically called "physical Bitcoins"), and when that approval happens, it will surely solidify the flagship cryptocurrency's status as a distinctive financial asset.

Yared said, "It is not a new risk that we don't understand. It is just a heightened risk that we need to be extra aware of here."

Led by the bank's first-ever ‘digital assets' or cryptocurrency trader Justin Schmidt, the operation is expected to commence within the next few weeks. Once it launches, Goldman Sachs shall use its very own funds to trade Bitcoin futures on their clients' behalf.



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16 comments on "Goldman Sachs to Launch Bitcoin Trading Desk, Hires first Cryptocurrency Trader"

 Gerimantas07/05/2018 10:43:56 GMT
I personally think this is too high risk investment and i not understand it good too. So i better go and invest my money in real estate or buy some company stocks. Maybe Bitcoin is good investment for some people
 CALICUL07/05/2018 16:44:11 GMT
Goldman Sachs it would better recognize that they are forced to enter into the market with a cryptomoneda because this will be for their benefit. As long as the satellites are not destroyed by the sun or something else, they will have money to win because it's much easier to work with crypto directly from home. The world will prefer this crypto starting from now on and Goldman Sachs will promote to platinum... Cool
 Mober07/05/2018 18:58:54 GMT
It hast been a long time now that the crypto world is taking one hit after another.
And yet it still holds.
And with news like this, it will rise again.
BTC is stable for quite some time now above 9000.
 pajalnick07/05/2018 20:26:08 GMT
official financial institutions have long tried to deal with bitcoin but all the same bitcoin won in this fight .... the era of crypto currency has already come and if it does not like the official financial institutions it's only their problems ..... after this news it's possible to say with certainty that bitcoin will grow in price
 bowie198407/05/2018 23:35:16 GMT
Eff them to hell. 10 years after the global financial crisis they are starting to dip into a market which is ten times more wild and dangerous than the stockmarket. The SEC neds to make more regulations to make sure these institutions won't make bigger problems than they did already.
 magatt96608/05/2018 05:59:58 GMT
Music for my ears
 doubletop77708/05/2018 07:32:13 GMT
There seems to be a lot of interest in these bitcoins and there seems to be a lot of money to be made. I do not fully understand the concept but it will be very interesting to see how it all works out in the future
 CALICUL08/05/2018 16:45:03 GMT
This government agency Stock Exchange Commission she will not be too interested of what Goldman Sachs will do. If the world gets back into a crisis, these bankers will also receive money from people and they will steal from those who will be indebted to the banks. The population is not favored by governments and the banks yes. Because of this SEC will not be interested and Goldman Sachs will launch his Bitcoin.
 crankmuppet08/05/2018 17:26:05 GMT

Warren Buffet: "bitcoin is rat poison", Berkshire vice chairman Charlie Munger: "To me, it's just dementia. It's like somebody else is trading turds and you decide you can't be left out."

I personally, haven't a clue nor a spare bit to coin flip with.
 Mober08/05/2018 19:24:07 GMT
Regulations you are talking about.
Like people havent lost fortunes over the years, in the stock market, with all the bubbles
and the manipulation that is going on.
Where are the regulations there?
On the other hand of course though, there are people that have made good money,
if not a fortune, from the bubbles, in stock market also.

At the end nobody is forcing you to enter, any kind of investment, be it stock market,
crypto coins, land purchase and so on.

You either ride the wagon, or playing it safe, watching it pass in front of you...
 shokaku08/05/2018 19:31:02 GMT
Can't tell if this is a good sign for cryptos or not. They wouldn't do it, if they wouldn't expect a large enough piece of the pie for themself. On the other hand, such big banks just can't be trusted, and if they enter a market, this market will change.
 pajalnick08/05/2018 20:41:58 GMT

Warren Buffett is certainly a very conservative person ... and bitcoin is a direct threat to his well-being ... so it's not surprising that he says exactly such words .... but in any case in the financial sphere no matter how conservative it was not due to change due to Creep currencies ... and this does not change
 godoy08/05/2018 23:02:45 GMT
 bowie198409/05/2018 15:53:46 GMT
Dunno what LEGAL PEQUEMAS or CURSES CRIPTOM COINS or REGULAMNETADAS means, but dude you don't need to shout just to make sure sure you get your message across.
 CALICUL09/05/2018 16:46:10 GMT
If all poker rooms accept different Bitcoins Cryptocurrency then they will have to keep the other normal currencies like dollar, euro or money from different countries. If they will force us to play poker only through Bitcoin then there will be trading in the middle that will bring them extra money and players will lose with this conversion on each deposit or withdrawal.
 godoy09/05/2018 23:52:01 GMT
these digital coins are a pest and will be everywhere from here for some time so we must learn to deal with them and thus get the maxino out of it because this will be the future of poker and sports betting I think

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