Crypto Inactivity on Wall Street Hits Bitcoin Price

The Bitcoin (BTC) retail boom has taken its price to almost $20k this past year. Now, with the decentralised asset price hovering at approximately $4k, has the inactivity of institutions driven the price down? Bloomberg, has outlined several trade initiatives from the top tier Investment Banks, that has gained no significant traction or, did not materialise:

  • Goldman Sachs was among the first on Wall Street to clear Bitcoin futures. The firm during the year, was also considering opening a trading desk. With this put in ice, Goldman Sachs invested in custodian BitGo Holdings Inc and offered a NDF (non deliverable forward) on Bitcoin (BTC). This has gained small trading volume for its NDF product, having only signing up 20 clients.
  • Morgan Stanley has offered swaps that track Bitcoin futures since September 2018, however, they have not traded a single contract.
  • Citigroup Inc. has not traded any of the so called digital asset receipts that enable trading by proxy without direct ownership of the underlying coins.

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