Goldman Sachs, Morgan Stanley, Citigroup Inc., and more financial institutions [FI] have had interests about getting into the Bitcoin frenzy and have been signaling about the same ever since Bitcoin hit an all-time high back in December 2017.
With on-going discussions, the institutions have been developing infrastructure for when they offer cryptocurrency services. These FIs have been unsure as the collapse reached its depths in December 2018.
Justin Schmidt, the head of digital assets specialist informed at an industry meet that regulations are holding them back from progressing further. Although regulations are preventing them, Goldman Sachs wants digital assets specialists to be added to prime brokerage division.
As per Bloomberg, Goldman Sachs’ developments regarding the promised services of cryptocurrencies, when compared to last year’s Bitcoin frenzy are very slow and seem unrealistic, said people close to the matter. Goldman Sachs was among the first institutions on Wall Street to have started preparing for a trading desk.
Daniel H. Gallancy, CEO of New York-based SolidX Partners said:
“The market had unrealistic expectations that Goldman or any of its peers could suddenly start a Bitcoin trading business. That was top-of-the-market-hype thinking.”
Andrew Peel, who was hired as the head of digital assets at Morgan Stanley to help with providing swaps tracking Bitcoin futures isn’t successful in trading even a single contract, reported Bloomberg.
Even Citigroup has suffered the same fate and has not traded any of the crypto-based products. Barclays Plc. is completely abandoning its crypto-based service offerings as two of the hired specialists, Chris Tyrer and Matthieu Jobbe Duval have left the projects.
The caution from these institutions could be due to the sharp crash of Bitcoin from its all-time high at $20,000, causing the prices to plummet more than 85%. Bitcoin is currently trading in the $4,000 range.
Joe Weisenthal, a co-host of Bloomberg tweeted:
“Remember all those stories about Wall Street getting into crypto trading? Basically none of that is actually happening. Remember all those stories about Wall Street getting into crypto trading? Basically none of that is actually happening”
Kevin Furr commented:
“Wall Street getting into crypto” — Super Bullish!
“Wall Street bailing on crypto” — Super Bullish!
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