Goldman Sachs CFO Calls Trading Desk Rumors "Fake News"

Andrew Cummings
September 10, 2018

Earlier this week, a report suggested Goldman Sachs was backing away from its plans to open a cryptocurrency trading desk, as it was rumored to have meant to do this summer.

Devin Milsom, chief executive and founder of Crypto Investors Club, is anticipating an increase in the price of Bitcoin the moment it penetrates the $10,000 wall since investors don't want to miss out on a noumenon market surge.

Brian Kelly, CNBC commentator and CEO of BKCM, noted that traders are only focused on Goldman Sachs dropping cryptocurrency trading plans while forgetting that the bank will still be involved in the market through its custodial service.

One of the sources stated that the bank's executives believe that several steps have to be taken, majority outside the firm's control before they can make a legitimate foray into cryptocurrency trading.

The news of KP showing interest in blockchain comes at a time when South Korea is making serious advances in the crypto field. " The present state in South Korea is that the nation is involved in formulating the policies and regulations of cryptocurrency".

Describing physical Bitcoin as "something tremendously interesting, and tremendously challenging", Goldman's CFO emphasised on the need of a safe custody solution for the cryptocurrency. The company stated that it was backing away from its alleged cryptocurrency trading desk that it previously claimed would arrive during the summer, and it should come as no surprise that regulatory uncertainty is the reason why. But there was little news since on how the project has developed. However, the bank is considering the launch of custodian services for major funds.

Now, doubts have been cast by various media outlets that a trader who had access to insider information took position before the news reached the market, eventually gaining the first mover advantage. Since September 5th, bitcoin (BTC) is down 12 percent to $6,484 United States dollars.

Similarly, India's Securities and Exchange Board (SEBI) in its 2017-18 annual report, announced that the agency organized tours to other countries for its officials to study cryptocurrencies and Initial Coin Offerings (ICO). Ether (ETH) has fallen more than 22 percent in the same time period, while other altcoins are down similarly biting amounts. So, Bitcoin will regain the losses made in the past week after clarity on what is fake and what is true about Goldman Sachs. Will acceptance of a custody solution lead to a market turn-around?

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