Goldman Shuns JPMorgan's Dimon - Plans Bitcoin Trading Operation

Tyler Durden's picture

While JPMorgan CEO Jamie Dimon said he "would fire" any employee found trading Bitcoin, Goldman Sachs' leadership is embracing reality as WSJ reports the bank is weighing a new trading operation dedicated to bitcoin and other digital currencies.

On the heels of IMF Chief Christine Lagarde's comments that:

"... the technology itself can replace national monies, conventional financial intermediation, and even puts a question mark on the fractional banking model we know today... So I think it may not be wise to dismiss virtual currencies."

Bitcoin's price has continued higher - erasing the losses from China and Jamie Dimon's comments...

And now, according to people familiar with the matter, The Wall Street Journal reports that Goldman Sachs is the first blue-chip Wall Street firm preparing to deal directly in this burgeoning yet controversial market.

“In response to client interest in digital currencies we are exploring how best to serve them in this space,” a Goldman spokeswoman said.

Goldman’s effort is in its early stages and may not proceed, the people said. The firm’s interest, though, could boost bitcoin’s standing among investors and fuel the debate around digital currencies, which were initially viewed as havens for illicit activity but are pushing further into the mainstream investment world.

Goldman’s seeks to serve a growing cadre of institutional investors wagering on bitcoin.

Its effort could eventually entail a team of traders and salespeople making markets in bitcoins much as they do Japanese yen or shares of Apple Inc.

Keeping abreast of the day-to-day cryptocurrency market could also position Goldman to capitalize on further development of this market. Digital-currency proponents envision a world where coins will be widely accepted by online retailers and companies will use the tokens for cross-border commerce.

Some 70 hedge funds now invest in cryptocurrencies, according to Autonomous NEXT.

Already, a handful of nonbank finance firms, such as DRW Holdings LLC’s Cumberland Mining and Genesis Global Trading Inc., broker bitcoin trades for institutional investors that want to buy or sell larger amounts than exchanges could handle.

That is a role that banks could easily step into.

*  *  *

This is going to be hard for Dimon to swallow...

But we do suggest a slight hesitation to the squid embracing another illiquid asset-class. We suspect as far as volatility goes - you ain't seen nothing yet.

With its fixed-income division revenues down 21% from last year through June, dragged down by poor performance in commodities and currencies (both near record lows in volatility), it appears Goldman is looking for another asset - with volatility - to trade.

WSJ also notes that Goldman’s effort involves both its currency-trading division and the bank’s strategic investment group, the people said. That suggests the firm believes bitcoin’s future is more as a payment method rather than a store of value, like gold.

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buzzsaw99's picture

the bitcoin crowd is effing screwed now hoo boy.

VD's picture

Buy btc, crash jpm = buy btc, crash your cryptomuppet selves.

Manthong's picture

 

That tells me Goldman is already sitting on a pile of electrons and wants the muppets to buy in.

Anything Goldman can trade I want no part of.

Manthong's picture

 

I really don’t have anything against crypto, in fact this might be an opportunity for asymmetrical warfare.

Any time Goldman buys in, move to another crypto.

BaBaBouy's picture

Bitcoinz . . . Vampire Squid Gets Inn, Time To GTFO ...?

BennyBoy's picture

 

Shit, I didn't think bitcoin et al would be so easy to manipulate.

Fuck the all the squidz.

nope-1004's picture

the bank is weighing a new MANIPULATING operation dedicated to bitcoin and other digital currencies.

Fixed it for ya.

Bunga Bunga's picture

Don't get too excited. Many Bitcoin exchanges are very thinly regulated if regulated at all. Starting a trading operation on Wall St 24/7/365 is a completely different venture. Lots of regulation and much higher cost. They can't compete in order to become dominant. GS is also a dinosaur which will burn a lot of money in the beginning, while almost all crypto exchanges started small in garage like setting and became big by growth. It's like GE trying to make can openers in the US and to fight the small Chinese manufacturers.

DWD-MOVIE's picture

I'm making over $14k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do...  http://disq.us/url?url=http%3A%2F%2Fwww.Jobzon3.com%3Ab8eR_DQLwGRPVGtFvv...

Ramesees's picture

Goldman is a market maker - if their customers want to make a trade that isn't available in the market, Goldman will often take the other side of that trade as a service to their customers.  Oftimes, their customers WANT the Goldman trade to fail, as it's a hedge against a larger position.

I know you've all seen The Big Short, think about it like that - they made a market (took the other side of a trade) in MBS insurance for a customer when there was nobody else offering that product.  

Goldman would have to disclose if they had a large crypto investment at this point, so I doubt they've got one.  All of their traders do, individually, though, and their customers are clamoring for it.

 

It's hard to tell where we are on the stages of a bubble chart - we may be way down at "Media Attention"/"Institutional Investing" or we may be at "Bull Trap".  

 

Maybe Bitcoin's price goes up, maybe it goes down, but the Blockchain is a very cool technology, and Bitcoin is the Coca Cola of cryptocurrency - the brand name.  There will be (already are) lots and lots and lots of others and eventually one may surpass Bitcoin, who knows.

 

DjangoCat's picture

Goldman can actually provide a useful service if they make a market for the larger trades privately.  That should stabilise a very volatile market.

I take this as good news.  I would be less keen on them developing a futures market.

Ouagadoudou's picture

Best post for crypto on ZH ever.
Cheers to ur saying

The_merovingian's picture

They don't have a choice, either they provide what clients want or they lose out. Just surprised they handle Bitcoin as a currency and not as an asset. Transaction rate doesn't indicate it will be a heavily used currency anytime soon, even after segwit. 

The only way to manipulate the price is through washtrading and that won't work very well with Bitcoin, hence the dragging feet's.

Shlomo Scheckelstein's picture

"That suggests the firm believes bitcoin’s future is more as a payment method rather than a store of value, like gold."

...trap the goyim and...IT's gone HAHHAHHA

"Gold Is Money And Nothing Else"
- JP Morgan

http://www.zerohedge.com/news/2014-11-21/gold-money-and-nothing-else-jp-...

IH8OBAMA's picture

LOL. Goldman gives Bitcon the kiss of death.

evoila's picture

Ten guns. Yet no muzzle flashes?

Troy Ounce's picture

 

Question remains when he committed suicide. Before or after the shooting

 

Troy Ounce's picture

 

Question remains when he committed suicide. Before or after the shooting

 

aurum4040's picture

Goldman already called the previous top, damn close I should say, when they said BTC would hit $4800. They've been in on BTC since before the August fork. They jumped in at 1.8k after the fork scare, pumped it to $5k, dumped, and bought back in at $3k. And I supposed you don't own anything because Goldman trades nearly everything at this point. Especially hammered tungsten Comex futures. They don't trade Ethereum, yet. 

Raffie's picture

*Anything Goldman can trade I want no part of.*

Well they are all in with gold/silver so sell fast before it hits zero. 

Txpl9421's picture

But what does Gartman think?  Isn't that the best indicator?

tmosley's picture

Those boots are clean. You don't have to keep licking them.

FreeShitter's picture

Good luck kikes, I wish you well..

DogeCoin's picture

So if Goldman gets its dirty hands into this, does that mean Bitcoin is going to be a tool of the Globalist?

FreeShitter's picture

No, they just want in at a lower price like thier pals over at JPM.

Son of Captain Nemo's picture

"No, they just want in at a lower price like thier pals over at JPM."

Already there "Shitter" with or without "a new hash"... Remember they can mine at will just as long as they have a "wallet" and the means to pay for it just like anyone else.

Last I checked "Satoshi" don't discriminate!

buzzsaw99's picture

they just want to front run the muppets for a microbitcoin here and there.  just a haircut. try to sit back and relax.

Raffie's picture

Unlike how they run PM huh?

You have some real demons in you for sure. 

Rick Cerone's picture

As The World Turns was a horrible soap opera, and so is this.

Raffie's picture

An the other soap opera All My Little Stackers

JoeTurner's picture

shekels and shiksas bitchez !

WillyGroper's picture

embracing reality is the fractionalization of digital money created by the laundering mafia to begin with.

welcome your overlords.

https://www.youtube.com/watch?v=M1Dfa-g0DPY

 

save it mosley...i know that's where we're going to be coralled & disconnected.

the tech could be used for good, but like everything else the satanists get ahold of, they pervert it for their evil agenda.

Son of Captain Nemo's picture

Can't you just taste how wonderful the shit will be on that "newest flavor" of "Buttcoin"?...

I want to "bite that coin" so bad I can hardly stand it!

taketheredpill's picture

 

 

Dimon can't see the future of fucking clients over without a trace.

TVP's picture

It's all over - the death of bitcoin has arrived, again.

https://99bitcoins.com/bitcoinobituaries/

 

Father ¢hristmas's picture

When I corner the silver market and crash JP Morgan Chase, I am going to have a beer with Lloyd and massage his bald head as "Wind Beneath My Wings" gently plays late at night at Comet Pizza.

affirmed_78's picture

Maybe they'll create their own wallet interface for clients and provide insurance.  For a fee of course.

Totally_Disillusioned's picture

Check the box...support and opposition of Bitcoin trade.  That ought to keep the Sheep busy.   Now the bankster cabal can get on with clearing their sheets before the collapse.

shizzledizzle's picture

First the IMF and now The squid... RIP

Herodotus's picture

Futures contracts are needed for these digital currencies to ensure a more liquid market.

WillyGroper's picture

"we are exploring how best to serve them in this space,” a Goldman spokeswoman said."

it's their cookbook...no silver platter.

coast1's picture

I posted several times yesterday that the NSA started the plan for crypton currency in 1996, to possibly be used for NWO world currency...Are you starting to believe me now?   Anypone who gets into crypto, whether it makes money or not, you are buying into your own enslavement and/or advancing the NWO world currency.  I have hours of research on this subject.

FreeShitter's picture

Hours?  You getting your doom porn from x 22 I see.....you do know dave is batting 0 for never as well? What episode is he up to now?

coast1's picture

I am sorry I busted your bubble, and yes hours of reading...Every article I could get my hands on...Kind of addicted when I find something interesting.. Its sad when people do not want to hear the truth, they ignore it.. Then they put down the one giving them the truth, with all kinds of references out there that you could be researching..did you do any research?   No, and you are the type that will take your enslavement...This is why i warn all of you, wake up and see what is going on...I am trying to help you here guys!!   IMF head even admits it...Bitcoin was a test run for the rothchild zionists....do you think they run almost the entire world because they are stupid?

tmosley's picture

Wowee, HOURS of research. 

You should write up the results of your research. I'm sure your dissertation would get you a PhD.