The investment bank isn't giving up and may revive the plans later. With the U.S. Securities and Exchange Commission (SEC) still pushing back on proposals for bitcoin exchange-traded funds, for instance, U.S. governmental authorities have not yet embraced cryptocurrencies to the extent many had expected by this time.
In December of a year ago, Goldman Sachs announced its plans to set up a cryptocurrency trading desk by 2018 and become the first Wall Street giant to get involved with the cryptocurrency-related trading activity. Following news of a delay, Goldman Sachs CFO Martin Chavez is now saying that the firm never had a timeline for it in the first place.
The crypto market is struggling to keep above the waters after Goldman Sachs chose to withdrawal its support for plans to launch a crypto trading platform. "In response to client interest in various digital products, we are exploring how best to serve them in the space", said the company via a statement. Do your market research before investing in cryptocurrencies. Clearly, though, the regulatory landscape is far from ideal. However, Brian Kelly, founder and CEO of crypto hedge fund BKCM, is more anxious about the long-term impact of Goldman Sachs' about-face.
The launch date of Goldman Sachs' custody offering has not yet been disclosed. Institutional and wealthy investors are likely looking for regulation support and legal protections before pouring money in. "They were not a part of the ecosystem yet, but to the extent that they represent the institutional herd, this is a negative", Kelly added. The overall market has lost around 18% of its capitalization in just the half-day after the announcement.More news: Man fatally shot by police officer mourned from Texas to St. Lucia
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The price of Ethereum has recently hit a 12-month low after the major market sell-off this past week and is now trading at $217.
The news of Goldman getting cold feet caused the cryptocurrency market to crash. Matthew Newton, a market analyst, told the publication, "Bitcoin's price might be rising but it's way too early to call this a true resurgence..."