Eric Katz's Avatar
Eric Katz
published in Blogs
May 09, 2018
Goldman Sachs in the Bitcoin Business?

Goldman Sachs in the Bitcoin Business?

Most large banks have traditionally avoided investing in cryptocurrencies like bitcoin, which are viewed as too controversial and scandal-plagued to associate with. But that may be changing, as Goldman Sachs is taking steps to create the first bitcoin trading operation on Wall Street.

Goldman, who hired former Seven Eight Capital electronic trader Justin Schmidt as its first digital asset trader, plans to use its money to trade with clients on bitcoin-linked contracts. They will also offer a flexible future called a non-deliverable forward to their clientele. Goldman will not buy and sell bitcoin upon launching their new service, though the team in charge of the new program left open that possibility in the future (pending regulatory approval and ability to negate the risks that come with holding the currency.)

The past two years have seen cryptocurrency prices and profiles boom – even so, traditional, well-established institutions have been slower to come on board to what they perceived as a regulatory minefield. But they have had a hard time ignoring skyrocketing prices, and with payment services like Square now offering bitcoin services and some commodity exchanges trading bitcoin futures contracts, it appears cryptocurrencies are well on their way to the mainstream.

 

 

The decision is not without risk – the same uncertainties about future regulatory climate that precipitated bitcoin’s sharp decline in value earlier this year remain, and the company needs to find a way of securing their holdings that meets Wall Street standards. But Goldman’s board of directors ultimately approved the decision to begin trading bitcoin contracts after ensuring its legitimacy, having found it increasingly difficult to ignore inquiries from its clients about digital currencies. Some were clamoring to hold it as a limited-supply commodity, like gold; multiple hedge funds and endowments reached out asking for advice on how to handle crypto that had come into their possession. “It resonates with us when a client says, ‘I want to hold bitcoin or bitcoin futures because I think it is an alternate store of value,’” said Rana Yared, part of the team of Goldman executives assigned to the project.

The banking giant remains realistic in assessing digital currencies – “I would not describe myself as a true believer who wakes up thinking bitcoin will take over the world,” said Yared. But one of the world’s biggest banks showing interest in bitcoin is a major legitimizing factor for all cryptocurrency. This is a logical step as Goldman works to position themselves as the most technically-sophisticated firm on Wall Street – and they remain acutely aware of the consequences. “It is not a new risk that we don’t understand,” added Yared. “It is just a heightened risk that we need to be extra aware of here.”

Related Tickers: BTC.X
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.