December 21, 2017 (The Ferowich Report) — In yet another signal of mainstream adoption of cryptocurrencies, which have enjoyed outsized returns in 2017, Goldman Sachs has set out to establish a cryptoasset trading desk by the end of June, Bloomberg reports.
The team will “make markets in digital currencies such as bitcoin, according to people with knowledge of the matter,” sources with knowledge of the initiative told Bloomberg.
One issue cropping up for Goldman, the corporate realm, and the regulatory landscape is custody of cryptoassets. Maintaining security over digital assets has been amplified by reports of digital asset exchanges getting hacked, the most recent example being Wednesday’s Ether Delta hack.
The move demonstrates what many cryptotraders have discussed as 2017 comes to a close: it’s only a matter of time before cryptoasset trading becomes more competitive.
“In response to client interest in digital currencies, we are exploring how to best serve them,” a Goldman spokesman said in a statement.
Another potential implication of the move is the influx of deep-pocketed investors who may have had reservations in digital assets until now.
While new, and perhaps smarter, capital could grow the total market value of cryptoassets, financial products such as futures and puts allow investors and traders to bet against digital assets. Futures rolled out at CME, Cboe, and TD Ameritrade over the past two weeks.
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