Goldman Sachs Will Manage Bitcoin For Its Clients, Insiders Reveal

Goldman Sachs Will Manage Bitcoin For Its Clients, Insiders Reveal

Goldman Sachs has reiterated it plans to roll out “crypto asset offerings” to clients in future in what Bloomberg describes would be a “boost for the burgeoning universe of funds betting on cryptocurrencies.”

‘In Response To Client Interest’

In comments to the publication August 6, a spokesman for the financial giant built on previous announcements from May this year about its plans to offer Bitcoin futures.

“In response to client interest in various digital products we are exploring how best to serve them in this space,” the spokesman said.

At this point we have not reached a conclusion on the scope of our digital asset offering.

Other sources “with knowledge of the matter” confirmed to Bloomberg that Goldman plans to offer custody for crypto funds.

“That means the bank would hold the newfangled securities on behalf of the funds, reducing risk for clients seeking to guard against the threat of losing their investments to rogue attacks,” the publication clarified.

Goldman’s position jars with that of fellow giant Blackrock, CEO of which Larry Fink claimed in July that “no client” had sought exposure to cryptocurrency.

‘The Herd Starts To Move’

If true, the announcement marks the second milestone for the cryptocurrency industry in a week, coming days after Intercontinental Exchange announced it would create and launch a regulated digital asset platform, Bakkt, by November.

Already newly bullish on bitcoin following the news, commentators have already greeted Goldman’s renewed commitment to crypto with zeal.

“After the bombshell that was [Bakkt] it’s only natural that the rest of the herd starts to move,” fund manager Brian Kelly tweeted Monday.

After the bombshell that was @bakkt it’s only natural that the rest of the herd starts to move… https://t.co/Z7q018DGUJ

— Brian Kelly (@BKBrianKelly) August 6, 2018

Goldman has continued to remain cautious on crypto assets themselves in recent months, this week claiming it foresees further price drops across markets in the short term.

“We expect further declines in the future,” authors wrote in a midyear report, adding that cryptocurrencies “do not fulfill any of the three traditional roles of a currency.”

“In fact, we believe they garner far more traditional and social media attention than is warranted,” the report added.

What do you think about Goldman Sachs’ plans? Let us know in the comments below!

Images courtesy of Shutterstock, Twitter

Published at Mon, 06 Aug 2018 13:00:07 +0000

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