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RE: Goldman Sachs To Open Bitcoin Trading Operation

in #bitcoin7 years ago

This is good news for sure. This further establishes that there is immense institutional interest out there and it is forcing goldman sachs to start this desk. Even more important, goldman is pushing regulators to get crypto regulation in place.

I think this may lead lead to sequential classification of crytos as securities. Given the amount of debate as to whether ethereum and icos are securitiea or not, bitcoin may be the first to get regulatory clearance and see massive institutional flow.

Lastly, banks will not be able to buy or sell bitcoin till they have regulations, which is why they are forced to launch derivatives. In order to provide liquidity and make markets, banks need bitcoin inventory and also need to classify bitcoin in some risk asset bracket and hold capital against it. Unless they know what to do with it and how to account for bitcoin on their balance sheets, they will not start providing liquidity in bitcoin. I talk more in my article -

https://steemit.com/bitcoin/@karamyog/can-banks-enter-crypto-space-barclays-ceo-pushes-back-what-should-you-believe

Goldman's move will usher more banks and with time, we will see a massive derivative desk on crypto assets. For banks, one door will close but another door will open, both due to cryptocurrencies.