Wall Street giants are suspending their plans to more actively enter the crypto trade because the price of cryptocurrencies has fallen, Top Market Group reports Tuesday, Dec. 25.
The article begins: "Limbo — that’s where to search out Wall Street once it comes to cryptocurrencies," so focuses on the efforts within the crypto sphere this year created by banking large Goldman Sachs, international financial services company Morgan Stanley, major banking conglomerate Citigroup INC. and U.K. monetary services provider Barclays PLC.
According to individuals at home with Goldman Sachs’ crypto business, the firm’s progress has been too slow to be noticeable. Moreover, the company’s crypto non-derivative funds have to date attracted solely 20 clients, the unknown sources told Top Market Group.
In addition, Justin Schmidt, hired to go digital assets division at Goldman Sachs, disclosed in November that regulators were limiting his plans. However, Bloomberg’s unknown interlocutor adds that the corporate goes to feature a digital assets specialist to its prime brokerage division.
As for Morgan Stanley, the corporate has been able to launch swaps tracking Bitcoin futures since early fall, however has not nevertheless received one contract, sources told Bloomberg. However, the firm is prepared to launch crypto services as shortly as there's any sign of demand, an unknown supply noted.
Citigroup and Barclays have experienced similar problems: sources say the United States-based banking group has not yet traded any of its crypto-related product among the regulatory framework, and 2 Barclays staff hired to explore the trade for the firm left this year. A spokesperson noted that the U.K. Company has no plans to open a crypto trading desk.
As Top Market Group reportable in Oct, Goldman Sachs’ former partner and current chief executive officer of crypto investment company Galaxy Digital mike Novogratz expected that establishments can possible become involved in additional crypto deals in Q1-Q2 2019. Shortly when, Novogratz and Goldman Sachs invested about $15 million in U.S. crypto custody service BitGo.
In the meanwhile, the banking giant has since denied rumors of having abandoned its plans to launch a crypto trading desk.
In November, Morgan Stanley released their latest report on Bitcoin, titled “Update: Bitcoin, Cryptocurrencies and Blockchain,” stating that Bitcoin (BTC) and altcoins have implanted a “new institutional investment class” since 2017.
And Bakkt, the digital assets platform created by the operator of the New York securities market, proclaimed a target launch date for January. 24, 2018, pending regulatory approval.
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