Goldman Sachs reopens the cryptocurrency desk
Goldman Sachs has decided to reopen its desk for trading in cryptocurrencies which will focus mainly in the sector of Bitcoin futures and other forward contracts, rather than virtual currencies in the strict sense, but at the end of the innovative sector I am always talking about. All of this comes after the bank lost some of its top managers, such as the head of consumer goods and co-head of asset managing, Eric Lane.
GS closed its crypto desk in 2018, when the peak between that year and the previous one deflated and Bitcoin dropped below $ 7,000 to begin what, at the time, was called the " Crypto winter ”the winter of cryptocurrencies. In September 2018, when there seemed to be no reversal, GS had closed everything. Now Bitcoin has grown 7 times since that day and, with quite a bit of delay, the Bank has taken an interest in it again.
As before, the team will be part of the US bank's Global Markets division and will use the bank's flow desk to access clients and counterparties.
The desk is part of Goldman's fast-growing digital asset business, which also includes projects involving both blockchain technology and CBDCs, the virtual currencies of central banks.
Obviously, the real reason Goldman is interested in trading Bitcoin is its very high volatility, which while painful for holders and small traders, is extremely valuable for professional traders, and makes for both the underlying token and derivatives. correlates that are attractive to investors willing to take greater risks with long and short positions, while seeking yield in an environment of historically low interest rates.
The bank is also exploring the potential for an exchange-traded Bitcoin fund and is actively exploring the possibility of offering a service for custody of digital assets. The reboot of the trading desk comes amid growing institutions interest in Bitcoin, which has exploded by more than 470% in the past year, outpacing any innovative asset class launched by a Goldman desk.
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The Goldman Sachs article reopens the cryptocurrency desk comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/goldman-sachs-riapre-il-desk-criptovalute/ on Tue, 02 Mar 2021 08:00:13 +0000.