Goldman Sachs shelves plans to build a crypto trading desk

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Goldman Sachs shelves plans to build a crypto trading desk

Yesterday, CryptoGlobe reported the movement and dumping of some of the 111,000BTC stash - about $100m-worth of it, in fact - via the two exchanges, and attributed the dual price drops of mid-morning yesterday to a the sell-off.

Goldman has dropped the planned launch of a cryptocurrency trading desk to a lower spot on its list of priorities.

His comments came after Business Insider issued a report on Wednesday, suggesting the financial services giant would be scrapping its plans to trade cryptocurrency. All major coins are rangebound and it is possible that the harm done by the fake news won't be recovered quickly.

In recent weeks, Goldman executives have concluded that many steps still need to be taken, majority outside the bank's control, before a regulated bank would be allowed to trade cryptocurrencies, the financial news website reported.

As reported by CoinDesk in October 2017, Goldman Sachs has been considering launching a new trading operation for the past one year which would focus on bitcoin and other digital currencies.

"At this point, we have not reached a conclusion on the scope of our digital asset offering", Goldman Sachs spokesperson Michael DuVally told Reuters.

The CFO continued by reaffirming Goldman Sachs' exploration into the Bitcoin market, suggesting that interest into the area from the bank's clients has been high, and they are keen to have tradeable Bitcoin products in the near future. It would have allowed enterprises and institutional investors to enter the market.

The moves follow last month's decision by United States regulators to reject another round of Bitcoin exchange-traded fund proposals. Goldman Sachs will be proceeding to provide "crypto futures and forwards" for its clients.

The cryptocurrency market is bleeding for the second consecutive day, with prices of most popular coins down double digits in the last 24 hours.

The news of Goldman getting cold feet caused the cryptocurrency market to crash. "When people see their name, their eyes may light up, and they say: OK, we've finally made it - the bigger players are going to start to enter".

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