According to a report in May, Goldman Sachs Group Inc., one of the largest investment firms in the world, revealed plans of creating a bitcoin trading desk in a bid to become the first bank in Wall Street to enter into the crypto markets.
The report stated that the investment firm would carry out its plans by the end of Q1, 2018. The news made members of the crypto community optimistic that Goldman Sachs’ move would bring more institutional money into the crypto markets.
However, emerging reports from Business Insider on Sep 5 has revealed that the firm is dropping all plans of establishing a trading operation for bitcoin and other cryptocurrencies until further notice.
According to a source, the investment firm has decided to remove the plans of a bitcoin trading desk from its list of important projects because of the regulatory issues that linger in the crypto space, including several other factors.
“At this point, we have not reached a conclusion on the scope of our digital asset offering,” Michael DuVally, the bank’s representative stated.
Not Fully Rejecting Cryptos
While Goldman Sachs may have diverted its attention from a bitcoin trading operation, it has directed its focus to another crypto project – a custody product for a cryptocurrency. This project would allow the bank to hold the cryptocurrency of its clients while tracking the price.
It is comforting to know, at least to some extent, that Goldman Sachs still has a thing for crypto, and safeguarding the digital holdings of institutional investors would give them more confidence in trading cryptocurrencies.
Crypto Markets Slumped
Following the news was a price slump, with major cryptocurrencies in the top 100 showing negative. At press time, bitcoin has lost more than 11% of its value and Ethereum losing over 19%. BTC currently trades around $6500, ETH below $230, XRP at $0.29, BCH a little above $500, and EOS at $5.07 While the major markets are all red, Bitcoin Diamond appears to be the only crypto in the top 100 with solid gain, surging by over 100% against the USD.
While Goldman Sachs’ decision may have pushed the markets to the red walls, one thing is certain – a price correction always follow!