Goldman Sachs CFO Calls Plans to Ditch Cryptocurrency "Fake News"

Saturday, 08 Sep, 2018

News related to institutional traders tends to have some impact on bitcoin's price - indicating that there is an appetite for institutional involvement in the cryptocurrency world.

Bitcoin sank further Thursday, extending the previous day's slump sparked by reports U.S. investment banking giant Goldman Sachs has pulled back from immediate plans to open a trading desk for the virtual currency. This comes after last month's decision by USA regulators to reject another round of Bitcoin exchange-traded fund proposals.

In a recent interview, the Korea Post president revealed that he initiated a discussion with David Solomon, Goldman Sachs' new chief executive, noting, "I asked Goldman to pass on their know-how in the cryptocurrency area".

"... we've got a commodities business".

"A lot of retail investors' hopes for a bigger institutional presence were really being driven by Goldman Sachs", Stephen Innes, head of trading for Asia Pacific at Oanda Corp., said by phone from Singapore. "We're interested in having that exist and it's a long road". It actually has a lot more properties you could ague as commodities. This type of trading does not make an actual delivery of the physical oil. It was trading above $19,000 in mid-December, and if its falls continue it could threaten this year's low of $5,887. He added that his firm was pursuing a derivative of bitcoin because "clients want it".

"In response to client interest in various digital products, we are exploring how best to serve them in the space", the spokesman said. The bank will focus on non-deliverable forwards.

He continued to say that they will be settled in US dollars and that the reference price would be the Bitcoin-US dollar price, which will be established by a set of exchanges.

"Physical bitcoin is something tremendously interesting, and tremendously challenging".

The slump has affected other cryptocurrencies just as severely: Litecoin and Bitcoin Cash have both dropped by more than 4%, while Ethereum's price as plummeted by 20% to its lowest level this year, according to a Business Insider report.