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Wall Street Giants Rethink Decision To Enter The Cryptocurrency Market As Prices Decline

No one likes a bad investment, and Wall Street is certainly not a fan of it, that is why its previous plan to join the crypto industry has been put off until later because of the declining value of digital assets. This was made known in a recent report by Bloomberg.
The article starts with: “Limbo — that’s where to find Wall Street when it comes to cryptocurrencies,” and then keeps its focus on the roles Goldman Sachs played this year in the crypto community alongside other notable companies like Morgan Stanley, Citigroup Inc. and Barclays PLC.

A Slow Crypto Road for Goldman Sachs

Those who have confidential knowledge about the details of the crypto business embarked upon by Goldman Sachs have disclosed to Bloomberg that the firm’s growth has been slow at best, too slow to capture anyone’s attention. Furthermore, the non-derivative crypto funds of the company have only successfully attracted 20 clients.
Justin Schmidt, the person in charge of Goldman Sachs’ digital assets division, said in November that the influence of regulators was not allowing him to work as he wished, that the regulators brought limitation to his plans. Anyway, the unnamed source of Bloomberg provided additional information, stating that a cryptocurrency specialist will be coming on board the prime brokerage division, an addition facilitated by the company.
According to Bloomberg’s sources, Morgan Stanley is yet to secure a single contract for its swaps tracking Bitcoin futures which have been ready since early fall. But notwithstanding, anytime there is a sign of demand, the company will be well prepared to commence its cryptocurrency services, as disclosed by an unnamed source.

An Expected Growth in Crypto Participation In 2019

Barclays and Citigroup are not without issues as well, in fact, they have gone through similar problems like the ones mentioned above. According to sources, the financial institution based in the US has found it difficult to trade any of its products that are crypto-related within the framework instituted by the regulatory agency, and in the case of Barclays, the employees the company hired to be its eyes and ears in the crypto market left this year. This has led the UK company to decide to forgo all plans of opening a crypto trading desk, as noted by a spokesman.
Mike Novogratz Puts Year 2018 In Review
In October, it was reported that Mike Novogratz, the CEO of Galaxy Digital, predicted that in Q1-Q2 of the year 2019, there would be more participation in crypto deals by institutions. It didn’t take too long after the release of this report that Goldman Sachs and Novogratz made about $15 million investment into BitGo, a US custody service for cryptocurrency.
Meanwhile, the rumours saying that the banking giant has no further plans of launching a crypto trading desk was said to be false by the institution.
Morgan Stanley released a Bitcoin report in November with the title: “Update: Bitcoin, Cryptocurrencies and Blockchain,” saying that altcoins and Bitcoin (BTC) have established a “new institutional investment class” since the year 2017.
The digital assets platform, Bakkt, is set to launch on Jan 24, 2019, once its regulatory approval is obtained.

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