Goldman Sachs CFO cries ‘fake news’ on the firm’s plans to abandon crypto trading desk  - The Hustle
The Hustle

Goldman Sachs CFO cries ‘fake news’ on the firm’s plans to abandon crypto trading desk 

Goldman Sachs CFO calls Business Insider’s report of the company backing out of its crypto trading desk initiative “fake news,” but that couldn’t stop crypto’s market cap from nose-diving.

Goldman Sachs CFO Martin Chavez cleared the air after a report on Wednesday that the storied investment firm reneged on their plans to get into the crypto game.

“I really have to describe that news as fake news,” Chavez said on stage when asked about the claims Thursday at TechCrunch Disrupt.

The CFO assured the audience that Goldman is still working on a type of derivative for bitcoin because “clients want it.”

By the fake-beard of BI…

Bitcoin fell below $7k as the crypto market cap shed $15B in 90 minutes after the initial Wednesday report by Business Insider.

The Wall Street behemoth has been considering the launch of a cryptocurrency option for clients over the past year. But according to CNBC, its plan for the initiative has never been very clear.

What Chavez did make clear is that while a timeline for the venture has never been established, Goldman has been approving bitcoin-linked futures contracts since May and providing clients liquidity with those futures.

Crypto wariness strikes again!

As for physical bitcoin, Chavez explained that the company is not quite in the position to get in the game — mainly due to factors out of the institution’s control.

Issues with bitcoin’s volatility, security, and asset storage have all been regulatory moats for institutional investors, especially as bitcoin continues to struggle to reach its near-$20k high back in December.

The value of the entire crypto market has since dropped by more than 65%: As of Thursday, Bitcoin was trading at $6.4k “Satoshi tears.”

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