Goldman Sachs Is Looking to Trade More Than Bitcoin Futures, COO Reveals

  • Leading US investment bank Goldman Sachs revealed it's looking to trade more than just bitcoin futures products.
  • This could imply the financial institution will trade bitcoin and other cryptocurrencies directly, although it's likelier it will choose other products.

Leading US investment bank Goldman Sachs is reportedly looking to get more involved with cryptocurrency-related products, beyond the publicly-traded derivatives it already offers. This, according to the company’s chief operating officer David Solomon.

Speaking to Bloomberg TV in China, Solomon revealed that Goldman Sachs “must evolve its business and adapt to the environment while responding to a question about cryptocurrencies.

According to Solomon, the financial institution has been approaching cryptocurrency-related projects “very cautiously.” He said:

We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously. We’re listening to our clients and trying to help our clients as they’re exploring those things too.

David Solomon

Recently, as covered by CryptoGlobe, Goldman Sachs’ chief executive officer Lloyd Blankein revealed that bitcoin isn’t for him and that he doesn’t own any, while noting that he would be able to explain why cryptocurrencies became mainstream, if they achieve such status.

The CEO revealed he has in the past passed on innovations – citing the cellphone one as an example – because he believed they were a fad, and admitted cryptocurrencies could replace fiat currency, just like precious metals like gold and silver were replaced.

Blankfein has in the past been against bitcoin, as he pointed to it and other cryptocurrencies as a “vehicle to perpetrate fraud.” Later on, he claimed to have a “level of discomfort” with the flagship cryptocurrency, but admitted to being open to it.

Notably, Solomon is said to be a clear frontrunner to succeed Lloyd Blankfien as Goldman Sachs’ chief executive officer. The financial institution’s stance towards cryptocurrencies has been changing over time, as in 2014 it argued the flagship cryptocurrency doesn’t qualify as money, while last year it revealed it’s hard for institutional investors to ignore it.

Recently, it has been reported the investment bank may be about to launch a bitcoin futures trading operation. While the exact date in which it would launch isn’t known, the move is reportedly an answer to popular demand as hedge funds, endowments and other institutional investors showed interest in trading crypto-related products. Per Solomon, Goldman Sachs already helps clients deal in publicly-traded bitcoin futures.

Bitcoin's Price Stability Is a ‘Good Thing’, Co-Owner Argues

Francisco Memoria

Cobra Bitcoin, co-owner of the website originally registered by Bitcoin creator Satoshi Nakamoto, has argued that Bitcoin’s price stability is a “good thing.”

On social media, Cobra Bitcoin revealed he hopes the price of BTC stays in its current range over the next three to four years, as it allows those with good intentions to accumulate more cryptocurrency while pushing out those who see bitcoin as a get-rich-quick scheme. Per Cobra, if you’re in bitcoin “you should be thinking in decades.”

The co-owner of noted that the cryptocurrency community is lucky Robinhood is letting retail investors with fear of missing out (FOMO) rush into the stock market, as while most will lose money they “at least won’t be competing with us to accumulate bitcoin.”

Cobra added that the biggest benefit will, however, be anxieties regarding BTC’s price disappearing and bitcoiners start focusing more on use cases and fundamentals.

The biggest benefit though will be the collective mental health of the Bitcoin community: if the price stays more or less the same, price anxiety will disappear and more Bitcoiners will talk about use cases and fundamentals, instead of being hyper-focused on the price.

The price of bitcoin, according to CryptoCompare data, has been ranging between $9,000 and $10,000 since it recovered from the March market crash that saw it lose 50% of its value in a two-day period. Since the beginning of this month, the cryptocurrency’s price seemingly entered a shorter range, between $9,000 and $9,500.

As CryptoGlobe reported, the range-bound movements have seen BTC’s volatility drop to a 15-month low. Over the last few years, when BTC’s volatility dropped significantly it preceded significant price movements.

Featured image by Austin Distel on Unsplash.