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More financial institutions explore cryptocurrency trading possibilities

Summary:

  • According to Thomson Reuters about 20 percent of the financial institutions are considering launching cryptocurrency trading operations

  • Goldman Sachs may be actually setting up a cryptocurrency trading desk

  • Indian crypto-enthusiasts take country’s central bank to court over the recent crackdown

The biggest cryptocurrencies in terms of market capitalization have experienced a significant jump in price throughout the last 24 hours. Bitcoin moved above the $9250 mark while Ethereum is eyeing the $700 handle. An improved outlook on the digital currencies may result from the research conducted by one of the major information firms showing an increased interest in this kind of assets. Apart from that, financial news website Tearshear reported that one of the world’s biggest investments banks may have not been telling us the truth about its intentions connected to the crypto sphere. On top of that we will say a word about a situation in India where crypto-enthusiast took country’s central bank to court over allegedly unconstitutional crackdown.

Thomson Reuters has conducted study among some of its clients (about 400 financial institutions) on the possibility of launching cryptocurrency trading operations this year. According to Sam Chadwick, company’s director of new content initiatives, around 20 percent of surveyed entities were “really interested” in this matter. The study shows that 70 percent of these firms are considering setting up cryptocurrency trading operations division with three to six months while about 22 percent is looking into the period of six to twelve months. Apart from that, majority of institutional investors is only interested in trading coins with the biggest market capitalization while some are exploring the perks of trading ICO tokens. A small group of respondents expressed interest in crypto investments only via ETFs.

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BITCOIN has broken above the recent short term consolidation range in a firmly manner overnight to trade way above the $9000 handle on Tuesday. A test of the resistance level at $9300 may be on cards. In case a sharper pullback occurs investors should watch 33-period moving average on the H4 interval as it proved to be a decent technical support level in the past. Source: xStation5

This shift in the financial institutions’ attitude towards cryptocurrency trading seems to be confirmed by the latest actions of some notable banks. A few days ago we have wrote about Barclays exploring clients’ interest in the cryptocurrencies. Yesterday Tearsheet reported about an interesting development within Goldman Sachs. As the Bank officials denied several times that they are looking into setting up a cryptocurrency desk some may find it interesting that the company actually hired Justin Schmidt, a former cryptocurrency trader. Mr. Schmidt is said to lead Goldman’s digital asset division. Having that in mind it looks like Bloomberg’s late-2017 report saying that the Bank is looking forward to launch cryptocurrency trading desk by the end of June 2018 may not be just a rumour.

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ETHEREUM continues to climb higher amid improved sentiment towards cryptocurrencies as a whole in the recent days. The coin may be eyeing a $700 handle for the first time since early-March. Source: xStation5

A tough stance of Indian authorities on the cryptocurrencies has outraged the representatives of the industry. Crypto-enthusiasts claim that the recent crackdown on the cryptocurrencies was unconstitutional. They reason their claims by saying that the central bank failed to provide community with any reason that would justify why cryptocurrency business must be restricted. As the charges of failing to comply with the constitution are serious the case will be resolved by the Indian High Court. The next hearing in this case is to be held on May 24th.

 

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