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As I was preparing to Reportage in Mexico On Wednesday, the markets for cryptographic assets surged. The supposed reason: a Internal business The story claiming that Goldman Sachs was planning to abandon his alleged pursuit of a cryptocurrency trading bureau. Apparently, the retreat of one of Wall Street's biggest names, the more daring, has scared investors, causing a sale of Bitcoin and his brothers. During the day, the price of Bitcoin dropped from around $ 1,000 to about $ 6,400 (and it continued to slide).
Yet a day later, Goldman's chief financial officer, Marty Chavez, described the report to an audience of TechCrunch Disrupt, the "mecca" of the annual startup, as a "false news". it already provides, to offer so-called undelivered forwards. In other words, the bank intends to settle the encryption contracts, but in dollars rather than in the asset itself. The next step, the physical bitcoin exchange, which requires secure storage of secret cryptographic keys, is "extremely interesting and extremely difficult," he noted.
Curiously, Chavez's remarks have done little to restore confidence in the markets. The price of Bitcoin was around $ 6,200 at the time of writing this bulletin. Crypto enthusiasts have remained shaken.
I was intrigued by pessimism, certainly. Even the original, panic-driven story, which Goldman denied, said the bank was interested in finding a custody solution, a product that would keep encrypted assets safe. I considered this a positive signal. The fledgling crypto industry needs more options to safely store this stuff. This does not mean that Coinbase, Gemini, BitGo and other financial newcomers who offer management services are not doing so adequately. But having top notch banks like Goldman and JPMorgan Chase sign on Bitcoin coffers on their own will go a long way towards addressing regulators' concerns in the market, without a doubt.
"From a child care perspective, we still do not see a custody solution for Bitcoin in child care facilities," Chavez warned during the TechCrunch stage this week. If Goldman actually explores a daycare, his words are obviously selfish. But that does not hurt.
The Securities and Exchange Commission continues to reject requests for ETFs or Bitcoin ETFs. (If you want to know more about this, I discussed the agency's blockages on a recent episode of The breakdown, a show Fortune with its sister publications.) Until now, the applicants have mainly offered to offer these funds by trading futures on Bitcoin, rather than in physical Bitcoin. But the instant portability and settlement of Bitcoin is part of Bitcoin's value and appeal proposition. Why treat Bitcoin like barrels of oil? I suspect that Bitcoin ETF applications will have a better chance of being approved once other retention options are available, allowing the funds to manage the physical asset itself.
Before taking bets, we need proper safes.
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