Bitcoin Forum

Now the voices rise from description Bitcoin as a bubble to a virus.
What has been confirmed is that we will notice increase institutional involvement in cryptocurrencies ----> regulation and maybe accepted in future?
 What do you think?

Goldman will poll their userbase to gauge how much interest there is in crypto. Then they'll calculate how much potential money bitcoin support could make them and make a decision as to whether its something they will pursue.

I think goldman sachs and other banks can be summarized in this way: "if they don't do it, someone else will." Banks stand to lose a lot of money if they aren't involved with the hottest and newest thing in finance: bitcoin and crypto currencies. If banks don't offer support for crypto those who do offer support will gain a lot of ground and establish themselves in a way which could make them strong competitors to banks in the future.

Goldman sachs bought Poloniex crypto exchange for $400 million earlier this year through Circle Internet Financial which GS has a controlling interest in.


Banks are taking steps to buy a slice of interest in bitcoin and crypto. The logical move for them to make.

It was not unexpected at all, everything is going in the same way as we were predicting. The implementation of regulating bitcoin and other cryptos was the first step toward the global adoption of cryptos and the journey doesn't end here there is lot more to see in future.
Wait for the time when government institutions will begin to praise cryptos and start using it.

If any of the big investment banks are getting into Bitcoin support, I bet it would be Goldman which would be taking the first step. They may not be doing proprietary trades on cryptocurrencies, but they can still help their clients buy/sell cryptocurrencies. This would be minimal risk and earn them fat returns.

It is indeed a good way for them to earn returns and will help bitcoin go mainstream more since it will encourage institutions to invest into cryptocurrencies. Nevertheless, I think they will get into bitcoin in their own way and help their clients buy/sell cryptocurrencies after they have established their crypto stash. They will surely do proprietary trades on crypto before attempting to buy and sell crypto.

It's not only Goldman Sachs that Circle is financially backed by, but also, yes, prepare for it.... JPMorgan Chase & Co.

I am however a bit skeptical when it comes to their motives to buy an exchange as Poloniex. Yes, crypto is booming, and yes, there is a lot upward potential, but it may very well be that it was a miscalculated gamble. Or, they have legally agreed to take over Poloniex back in the days it was still the largest exchange by volume for a while, but only were granted approval for takeover very recently. In other words, they got themselves into a deal that initially looked great and very promising, but later on turned into a waste they couldn't back off from. It will obviously take time to turn Poloniex into whatever they have in mind, but they have to do everything right directly.

I think that Goldman Sachs wants to be the first bank which will fill the new financial space and get preferences in the future. Some respectable sources predict that the capitalization of the entire crypto exchange market will reach 3 billion dollars in the next three years. It seems that they want to take some chunk of a huge pie.

Goldman is a business entity, so they will always try to do a market survey before starting a new venture to estimate how much money they can make out of it. So I won't be surprised if they call their customers for an open discussion to understand the market potential. Also there is a risk factor associated to it. Bitcoin is not yet accepted by the majority of the governments and its status is still unclear. So it is a big risk for a traditional financial institution as it involves their reputation as well. So they will judge the water before jumping into it.

However, if they finally decides to jump into this market, I am sure, it will pave ways for the other big players too. There are many big corporates sitting with tons of cash but they are not investing their money into crypto currency assets, because of the unclear legislation. If Goldman finally steps into this market after studying and removing all bottlenecks, it will be used as a reference to many other biggies and we will see billions of dollars coming into this market for good. I won't be surprise of it finally takes us to the road of legalizing bitcoin.  

I like this sentence :)
“In response to client interest in various digital products, we are exploring how best to serve them in the space,”
They know what they are doing for sure. It's not just picking the right coin. Many researchers are done and serious experts are stretching their brain for the best possible solutions. Serious money, serious game.

Exactly. I think so. If the big investment bank they are supporting by BTC, then surely Golman will do the first.
There will be opportunities or good news for the market at this moment the value can increase very fast, as there may be huge community of faith in the event. I think so.

People underestimate how important professional custody is. Institutions won't massively enter crypto without any wall street bank or other high level corporate entity offering custody services.

Why would they trust Coinbase or Xapo with billions in funds? Institutions like to keep things safe within their own circle, and Coinbase as largest crypto entity definitely isn't part of that.

I have read that Goldman Sachs and JPMorgan are both considering offering custody services for their clients. If they ever get it working properly it will turn out to be insanely bullish for every crypto enthusiast.