On Monday, March 1, Wall Street banking giant Goldman Sachs announced that it will soon be starting a crypto trading desk owing to the rising institutional interest in the crypto space. Besides, looking at the rapid growth in the BTC price, the banking giant is also planning to offer its own Bitcoin futures.
However, popular trader Peter Brandt has warned investors against Goldman’s entry into the Bitcoin market. Back in early 2018 when BTC was trading at its then all-time high of $20,000, Goldman made a similar announcement but that never fructified due to major BTC correction later. While Bitcoin (BTC) is now trading at the highs of $50,000, Brandt asks investors to safeguard their money.
— Peter Brandt (@PeterLBrandt) March 1, 2021
However, many crypto players have misjudged Brandt’s statement thinking that Bitcoin (BTC) price has topped. Clarifying it, Brandt further writes:
“Most ppl assumed my implication is that $BTC has topped/is topping. This Tweet was intended to point out that Goldman’s involvement in any/all markets means the firm has figured out a new angle to take skin from their clients”.
Goldman’s statements on Bitcoin have been a bag of mixed views. Last year during May 2020 when BTC was recovering from its March 2020 crash, Goldman said that it is “not a viable investment option”. However, citing a major rally last month, Goldman said that Bitcoin (BTC) has matured as an asset class.
More Bitcoin Institutional Products Coming to The Market
Institutions and big market players have showered much praise on Bitcoin in recent times. After correcting to sub $46,000 levels last week, BTC has finally recovered 6% today and trading above $49,000. However, it is still struggling to break past the resistance of $50,000.
The price surge comes amid positive institutional developments taking place around Bitcoin on Monday. Yesterday, CBOE filed with the U.S. SEC to list and trade shares of VanEck Bitcoin ETF. The SEC has acknowledged the application and said that it is under consideration. NYDIG has also filed for a Bitcoin ETF with the SEC.
On the other hand, Fidelity director Jurrien Timmer noted that Bitcoin has strongly established its credibility as a “digital gold” and that it will take over the Gold market cap in some time. However, during last week’s BTC price correction the Grayscale Bitcoin Trust (GBTC) premium dropped 4%. On-chain data provider Glassnode writes:
“As more institutional BTC products come to market, it is likely that Grayscale’s product (and others) will not command as heavy of a premium in the future, as more options are made available for institutions to invest as close arbitrage gaps”.