It’s never easy to call the top of, well, anything in any market. Unnamed: Art, baseball cards, absolutely not stocks, bonds or housing.
But then things look a bit high for bitcoin, at least in terms of emotions, which possibly signals some speed bumps ahead.
Goldman Sachs has gone back and restarted a cryptocurrency trading counter that was launched in 2018 and then released, Reuters reported. This time, starting next week, the bank (forwarded by an unnamed “person familiar with the matter”) will begin trading bitcoin futures and non-deliverable futures for customers. The bank is also reportedly considering launching a bitcoin exchange-traded fund (RTF) and has issued a request to investigate the custody of digital assets.
What a difference only a few months make. But again, we are in rare territory, where bitcoin has crossed $ 50,000 and then the $ 58,000 mark and backed again – but is still leagues above previous meetings when the peak was around $ 20,000.
Goldman first set up a cryptocurrency desk in 2018, just as the price of bitcoin fell from record highs and dampened investors’ interest in digital coins.
Goldman said in May that crypts are “not an asset class. “This is partly because the crypts do not generate cash flow or revenue and are not instruments for diversifying investments.
“We believe that a security whose estimate depends primarily on whether someone else is willing to pay a higher price for it is not a suitable investment for our customers,” says analysts.
Now, obviously, things have changed. Part of the pivot may be due to other major players getting involved, or at least edging closer to bitcoin.
In an interview with employees, JP Morgan co-chair Daniel Pinto, via CNBC, said, “if over time an asset class is developed that will be used by various asset managers and investors, we need to be involved. Demand is not there yet, but I’m sure it will be sometime. ”
It conflicts with previous statements from CEO Jamie Dimon, who has previously called bitcoin a scam.
New York, New York
And it should be noted that Wall Street is in New York, and New York is scrutinizing cryptos. The State Attorney, Letitia James, stated this week that crypts have dangers and will become the crosshairs.
“We are sending a clear message to the entire industry that you are either playing by the rules or we will shut you down,” she said. press release.
The parties must be registered with the Annual General Meeting Investor Protection Bureau. There is no doubt that the big banks, like Goldman, will do what they have to do to fulfill statutory and legal mandates. But one wonders what the customer’s demand will be and if they can handle the disadvantage.
Consider this statement by James: “All investors should be very careful when investing in virtual currencies. Cryptocurrencies are volatile investments with high risk that can lead to devastating losses as quickly as they can yield gains. ”
Meanwhile, Goldman and JP Morgan can simply look to give the public what they want, even if the upside can be overshadowed by the downside.