Goldman Sachs Inc. shut down its crypto trading desk plans in 2018 due to the ambiguity in the regulatory space. However, the investment bank has revisited the idea of its crypto trading desk and is set to reopen the desk by next week. According to a close source, the bank will start dealing in Bitcoin futures and non-deliverable forwards.
The source said that the crypto trading desk is part of Goldman’s plans to catch up with the speeding growth of the digital asset sector. The growing interest of institutional investors seems to have driven Goldman Sachs to consider reopening the trading desk.
Goldman Sachs Considers More Options
The bank is also contemplating the likelihood of a Bitcoin Exchange-Traded Fund and has requested information to investigate digital asset custody services. Goldman is also looking into other activities like blockchain technology and central bank digital currency projects (CBDC).
Furthermore, Goldman Sachs is not considering Bitcoin ETFs alone, but also willing to provide crypto custody services for its clients. This could be a major leap for the bank in terrms of crypto adoption as Citibank commented earlier today that Bitcoin seems to be at a “tipping point.”
In retrospect, Bitcoin has made huge progress in the past year. Recently, the price hit its all-time high around $58,000. However, in recent weeks, the price has dropped recently to about $48,000. Regardless of this, analysts are still optimistic and have predicted that the price may soon break out of the $50,000 price level again.
It is not surprising that Bitcoin is gaining more traction, as many investors believe it can serve as a hedge against inflation. The extreme volatility of Bitcoin is what has drawn certain investors who are willing to take on huge risks or profits. Even though the U.S. regulatory bodies are yet to approve Bitcoin ETFs, growing interests from institutional investors might make them cave eventually.