Wall Street is quietly moving out of the crypto market, in line with a recent Bloomberg ‘report‘. While the market has continued to be battered by news of fraud and impending regulative crackdowns, there was a time when it appeared like Wall Street had began to heat up to the rise of crypto assets.
Last year, when the crypto business enjoyed what was in all probability the largest bull run within its history, it appeared tons of mainstream monetary firms were also ready to join the bandwagon. Renowned Names like GoldmanSachs, Fidelity Investments and Barclays Bank Plc. were all connected with reports to open cryptocurrency divisions, and these speculations sent ripples around the monetary industry.
Goldman Sachs’ And Its Bitcoin Futures Exchange
Goldman Sachs was one of the primary Wall Street companies to show its interest in Bitcoin futures, and rumors claimed that the firm was working on the development of a seperate crypto trading desk. The investment bank partnered with Galaxy Digital and led a $57 Mln series B investment in custodian firm BitGo Holdings Inc., in an exceedingly bid to provide custody services. Fast-forward to a year later, and Goldman is nevertheless to offer crypto commerce.
Citigroup Inc. And Its Digital Asset’s Management
New York-based Citigroup Inc. conjointly reportedly ‘developed‘ a crypto-based product that might help asset management companies and hedge funds cut-off the risk they get exposed to when they invest in cryptos. The product, referred to as Digital Asset Receipt, was expected to offer crypto investors with an innovative means of keeping tabs on their investments and provide a further layer of legitimacy and trust to the fledgling asset category.
Barclays Inc. and Its Digital Asset Division
London-based Barclays Inc. The British bank showed a vast interest in crypto throughout the boom, hiring energy traders Chris Tyrer and Matthieu Jobbe Duval to assist lead its digital assets division. Both were employed to assist into avenues where the bank might build a foray into the crypto world and offer recommendations, particularly as rumors swirled that it had been considering developing a crypto trading desk of its own. Sadly, Tyrer ended up leaving earlier this year, whereas Duval remains with the firm. Additional to Tyrer quitting, Barclays conjointly denied any rumors of the crypto trading desk.
What’s Next Expected Now?
In line with the report, there are 2 reasons for the quiet withdrawal of Wall Street within the market; the downswing within the market and a scarcity of a regulative framework on cryptocurrencies. The primary reason is comparatively straightforward. 2018 has been a wild ride for the crypto market, with around $700 Bln being just wiped off. Crypto-based companies are feeling the brunt of this bear market, with news of retrenchments, firms folding up and makers of mining rigs losing profits by the day. On ‘regulation‘, it’s believed that the continuing lack of a particular regulative framework on cryptocurrencies has continued to discourage massive names within the monetary business from taking the plunge into the arena.
Hopefully, ‘2019‘ can see a rejuvenation within the crypto industry, yet because the introduction of clearer crypto rules and regulations.