Goldman Sachs announced that they would soon open a trade office for Bitcoin (BTC) contracts due to the intense request they have received from their customers.
According to information provided to the CNBC Fast Money program by Spencer Bogart, a partner at Blockhain Capital, other banks will most probably open a cryptocurrency business offices as Goldman Sachs is planning.
Bogart believes the reason of other banks following Sachs’ example is not just because Goldman Sachs’ name but rather because the crypto industry has enlarged to a degree that the companies/banks cannot “ignore it anymore.”
“Most of these banks have heard about the numbers or seen the numbers that companies like Coinbase and Binance are putting up. There’s a real risk that some of those companies could overtake some of Wall Street’s biggest banks if they don’t get in the market.”
Bogart also pointed out that even though this would be a giant step, it is a questionable step which is far away from a “perfect solution, that all of a sudden now just opens the floodgates to the institutionalization of Bitcoin.”
Since Goldman Sachs will only work with the capital market derivatives, Bogart noted a problem will occur about custody. And the solution, according to him, comes with the direct trading of Bitcoin by Goldman Sachs.
In terms of the future of cryptocurrencies, Bogart argued the most significant issue to be considered will be on cryptocurrency’s flow which, in his opinion, will have a few additional customers.
Recently, Goldman Sachs watched a few senior executives switch to the crypto realm, losing an old employee to the crypto stock exchange bank, another to the crypto wallet company and another to the crypto startup company. The bank had taken crypto merchant Jason Schmidt to become a deputy general manager of the Digital Asset Market to help the clients with cryptocurrencies.
