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Goldman Sachs considers trading Bitcoin

First Published 4th October 2017

Client demand could encourage other banks to follow

Goldman Sachs is reportedly considering trading Bitcoin (BTC) in order to satisfy clients' growing interest in cryptocurrencies.

Around 70 hedge funds are involved in BTC and some proprietary trading groups already offer market making services to clients. The lack of participation by banks thus far likely reflects unease about the weak regulation and the volatility in cryptocurrencies. JPMorgan CEO Jamie Dimon last week labelled Bitcoin a "fraud".

The CFTC's approval of LedgerX, an exchange for swaps and options on BTC aimed at institutional investors, could provide the imprimatur needed to get more banks involved in the market - perhaps even JPMorgan.