Goldman Slacks re-opens Crypto Desk
Excuse my nickname for Goldman Sachs, I had a friend work there in the 90's and that was his nickname. :-)
What is going on at Goldman? Back in 2018 Goldman opened and closed their Crypto desk due to Crypto market volatility. Really? A firm that makes money hand over fist in volatile markets, can't figure out how to make money in a volatile market? I for one is not buying what they are selling!
Recently several executive have left Goldman over the past few weeks. Peel that back it could mean several things perhaps these executives were responsible for the malaise that impacted the Crypto team or perhaps they had nothing to do with it.
Perhaps the Goldman Crypto team was attempting to utilize old tools for new problems. This syndrome hits lots of MBA's who think they know it all!
What did Goldman figure out to restart their Crypto desk? Market perspectives shows the CME and CBOE now allow trading of Future contracts in 2021. Goldman is seeking to restart its Crypto desk specifically in/around Bitcoin futures! These two are tight in equity markets and now appears they will operate in tandem in regard to Crypto Futures.
Did Goldman anticipate market pressures from Bank of New York Mellon which is seeking to provide Crypto services. Not overlooking the fact that the Crypto market exploded this year to over $1.3T. They sure do NOT want to miss out on any new potential revenue streams.
Recall CBOE was in the Crypto trading space from December 2017 thru March 2019. That timeframe sounds very similar to Goldman did, does it not?
We might never know the real rational behind the reopening but we can piece together the puzzle pieces and come up with a solid idea.
Most of know what type of volatility that Future(s) trading brings to the equity markets, I assume this 'hedging tactic' will be brought to Crypto markets too.
These opinions are mine and mine alone, don't try to trade or use this info as financial advise. Just putting together the pieces and modify my plans accordingly!
Enjoy the Journey!
