Wall St gears up for Bitcoin trading
Following the announcement that global banking giant Goldman Sachs is entering cryptocurrency trading, other Wall St heavyweights are now preparing to follow suit.
As Goldman Sachs becomes the first bank to offer Bitcoin trading, the race to join the party is well and truly on.
According to Blockchain Capital executive, Spencer Bogart, it’s “what banks do.”
Speaking to CNBC on Thursday, the venture capitalist said:
“That’s what a lot of banks do, follow what Goldman does.
“There’s a real risk that some of those companies could overtake some of Wall Street’s biggest banks if they don’t get in the market.”
A first for Wall St
On Wednesday, The New York Times broke the news that Goldman Sachs is moving forward into cryptocurrencies.
Its plan is to be the first Bitcoin-trading bank on Wall St.
The move comes at a time when many financial institutions have seemingly shied away from cryptocurrency over regulatory fears.
Bogart describes the bank’s bet on Bitcoin as “bullish” and says it’s “definitely a big step” for the cryptocurrencies market, saying:
“This market is so large you can’t ignore it anymore.
“Now we’re seeing large banks roll out trading desks.”
Bitcoin soared to record-breaking highs in mid-December of almost $20,000 before falling to around $6,000 in February.
According to Bogart, Bitcoin’s value could easily exceed $50,000 this year, as institutional investors move in.
At the time of press, the world’s leading cryptocurrency’s price is around $9,700 each, according to the live price charts.
The total market cap for the cryptocurrency market is approaching 1/2 trillion dollars and currently stands at $452 billion.
Bogart predicts that in less than five years, “way more people will be newly buying Bitcoin for the first time.”