[Update]: Goldman Sachs CFO Says Bitcoin Trading Desk Is Still Coming, Quit Lying With Fake News
Goldman Sachs and its executives say that the investment bank is still working on a cryptocurrency trading desk. The bank’s CFO, Martín Chavez, explained that the rumors about the institution delaying its plans to launch a crypto trading desk are ‘fake news.’ The reports explained that due to regulatory uncertainty the bank was not going to keep developing the cryptocurrency trading desk.
After the news spread on internet, the cryptocurrency market dropped very hard and Ethereum (ETH) registered one of the biggest losses.
In the past, the bank announced that it was going to create the first ever bitcoin trading desk. And indeed, the news were very bullish and the market registered an important increase. The main intention behind this decision was to provide institutional investors a new and regulated way to enter the cryptocurrency market.
However, the last reports that were circulating on the internet saying that the company abandoned these plans, were not real. Because of this misinformation, Bitcoin lost $900 dollars in just a few minutes.
Chavez explained that these plans were going to take a long time. A trading desk needs to be approved by regulators and several steps must be taken in order to launch it to the market.
For example, one of the things he mentioned is that they need to have an institutional-grade custodial solution for Bitcoin, and this is something that at the moment is not available. Indeed, he says that it is not easy and that it needs a long time to be prepared.
Martín Chavez, explained on the matter:
“When we talked about exploring digital assets, it was going to be exploration that would be evolving over time. Maybe someone who was thinking about our activities here got very excited that we would be making markets as principals in physical bitcoin, and as they got into it, they realized that is part of the evolution, but it’s not here yet. From the perspective of custody, we don’t yet see an institutional-grade custodial solution for bitcoin. We’re interested in having that exist, but it’s a long road.”
The misleading news about this have damaged the market. Bitcoin and virtual currencies were in a bear market that started at the beginning of the year and they couldn’t recover from it. When it seemed that they were taking off and operating positively, the ‘fake news’ appeared in the market and abruptly drove the prices down.
Cryptocurrencies have always been influenced by news, which talks about how vulnerable they are yet to price manipulation. There is a real danger, and this situation that we have experienced is one of the things that explain why the U.S. Securities and Exchange Commission does not approve a bitcoin-ETF.
Chavez says that the uncertainty in the market will disappear once the appropriate legislation is approved. Moreover, he explained that Goldman Sachs is searching for potential ‘over-the-counter’ derivatives for Bitcoin.
Projects such as the one that the investment bank wanted to do take a lot of time and work with regulators. However, the bank is sure about what it wants to achieve and how it wants to do it.