It might have been unthinkable a few years ago, but now Goldman Sachs, one of the biggest names on Wall Street, has said that it will start using its own funds to trade with clients in a range of contracts linked to bitcoin price, the New York Times reports.
Initially it won’t be buying or selling actual bitcoin, but a team at the bank is examining regulatory and security hurdles that need to be overcome before they can start actually buying, selling and holding cryptocurrencies.
This is the latest development in Goldman Sachs’ hot and cold relationship with bitcoin and cryptocurrencies. At the end of last year Goldman Sachs CEO Lloyd Blankfein called bitcoin a vehicle for fraud, and predicted it would collapse, deriding the idea of Goldman Sachs needing a “bitcoin strategy.”
Just a few months later the company declared that cryptocurrency was here to stay, and it dove into market predictions, both fairly accurate and less so.
Sourced through Scoop.it from: www.finder.com.au
It is quite amusing to see how the tables have turned over the years and especially the past couple of months.
If you remember, we had JP Morgan CEO, Jamie Dimon calling Bitcoin a fraud, that resulted in the big dip we witnessed in early Q4 of 2017. Meanwhile, during this period, JP Morgan in Europe was secretely buying the dip.
A few months later he did a “360” saying publicly that “I regret calling Bitcoin a fraud”
The list goes on, noticeably with Goldman Sachs and the “Too Big to Save” Duetsche Bank who’s notional value of their derivative book worth €46rillion who is also jumping in the Crypto sphere.