Goldman Sachs to introduce Bitcoin Futures and Eventually trade Bitcoins
Goldman Sachs one of the biggest investment banks in the world will be using its own money to trade Bitcoin futures on behalf of their clients they confirmed on Wednesday.
New York Times reported that Goldman Sachs is moving ahead to set up what appears to be the first Bitcoin trading operation. The exact date of release is not clear, it can be expected to be released in a few weeks.
The wall street giant although won’t be buying and selling “actual Bitcoins” according to New York Times but will use their own funds to trade a variety of contracts linked to the price of Bitcoin until the regulatory concerns are addressed and eventually they will start providing infrastructure for trading cryptocurrencies like Bitcoin.
Most of the banks do not believe that cryptocurrencies are actual currencies and view them as highly risky and speculative in nature, but due to the overwhelming demand from their clients, Goldman has decided to go ahead and take a “risk” with this initiative in order to stay ahead of the game.
Rana Yared an executive in Goldman Sachs who is overseeing the creation of the trading operation said
“I would not describe myself as a true believer who wakes up thinking Bitcoin will take over the world,” she said. “For almost every person involved, there has been personal skepticism brought to the table.”
She also said
“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.”
The bank had hired its first crypto trader Justin Schmidt a few weeks back for handling the daily operations. Schmidt had quit his hedge fund to trade cryptocurrencies full-time last year.
Bitcoin futures was first introduced in December by Cboe Global Markets Inc. and CME Group Inc.
We saw many banks and authorities being extremely skeptical about Bitcoin and even compared it to the Tulip bubble and called it a Ponzi Scheme and a “fraud”. But now we are seeing a lot of institutional investors and naysayers entering into the cryptocurrency bandwagon and now Goldman Sachs one of the most prominent banks in the world jumping on the crypto bus.
(If Bitcoin is a fraud and Goldman Sachs introduces Bitcoin trading to its clients in the future that will make the bank mammoth a fraud too, Jamie Dimon would not be very happy with this)
P.S- We are not sure what they mean by “physical Bitcoin” in the article.
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