#CryptoTradingDesk

[thecryptonewshub]

BitGo Launches Global OTC Trading Desk to Meet Rising Institutional Demand

BitGo's new Global OTC Trading Desk aims to provide institutional investors with enhanced access to crypto trading and financial services. BitGo, a leading cryptocurrency custody firm, has made a significant move to expand its offerings to institutional investors by launching a global over-the-counter (OTC) trading desk. This new service comes at a time when demand from institutional players in the cryptocurrency market is rapidly growing. The launch of BitGo's OTC trading desk is a strategic step to cater to the evolving needs of this market, providing a secure environment for spot and derivatives trading, as well as additional services like lending, yield generation, and custody solutions.

Operating under the radar since early 2024, the BitGo OTC trading desk has already achieved tremendous milestones, including billions of dollars in trading activity and a lending book worth more than $150 million. The desk will provide institutional investors with access to over 250 crypto assets for trading, making it an intriguing choice for large-scale investors seeking exposure to digital assets without impacting market prices. Also Read:   87m-crypto-scam-uncovered-in-norway-four-individuals-indicted-for-multi-nation-fraud This change is especially noteworthy as more institutional investors enter the crypto field, drawn to the prospect for high returns and diversification of their investment portfolios. As bitcoin acceptance among traditional financial institutions grows, BitGo's new trading desk gives these investors the tools they need to navigate this growing market. BitGo ensures that institutional clients have access to the entire range of cryptocurrency trading options by providing a powerful platform for spot trading, options, and financing services. This is critical because it allows institutions to hedge risk, create yield, and safely store their assets. The OTC desk also claims to provide increased liquidity and lower price volatility than regular exchange trading, which is sometimes a source of worry for large-scale investors. This move is part of BitGo's larger aim to strengthen its position as a leader in the cryptocurrency custody and trading sector. BitGo wants to address the growing demand for institutional-grade services while retaining its reputation for security and compliance. This is especially crucial as regulatory scrutiny of the cryptocurrency field increases, and institutions seek reliable partners to help them manage the market's complexity. To summarise, BitGo's establishment of the worldwide OTC trading desk is a significant breakthrough in the cryptocurrency business. As institutional investors look for more sophisticated and secure ways to trade cryptocurrencies, BitGo's new platform promises to provide both the tools and the security required for widespread involvement in the digital asset market. With services such as financing and yield creation, BitGo moves to the forefront of institutional crypto trading. Read the full article

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Goldman Sachs Pushing the Pause Button on Crypto Trading Desk

According to a Business Insider article (paywall) yesterday, Goldman Sachs has shelved plans to create a long rumoured crypto trading desk. The news yesterday may have been one of the catalysts for a wide-scale sell-off in crypto markets with Bitcoin losing close to 13% over the course of the day and most other crypto assets following suit. The Wall Street bank has been rumoured to be working on opening up a crypto trading desk since the heady crypto bull market in late 2017. Those rumours resurfaced in late April 2018 as Goldman hired Justin Schmidt to be the first head of digital asset markets. However, the company has kept their cards close to the vest with regards to their plans for crypto with few public statements involving any details. Even after the news broke yesterday, company spokeperson Michael DuVally's statement to Reuters was markedly cagey:

Goldman Reportedly Prioritizing Custody over Crypto Trading Desk

The Business Insider article cites 'people familiar with the matter' painting a picture of the bank having lowered its priority in creating a crypto trading desk and instead focusing on a crypto custody solution for the time being. Custodial solutions in crypto may be one of the prerequisites for large institutional investments and trading in crypto for large institutions regardless. Unlike the average crypto investor who can store their assets on a crypto wallet, for a bank or financial institution to trade crypto assets they will need a more robust custody. The change in tack towards custody also provides the bank more time to wait for the regulatory environment around institutional trading of crypto assets to become clearer. For Goldman to prioritize development of a custody offering before opening a full-fledged crypto trading desk makes a lot of sense and may have been the plan all along. Regardless of the Wall Street bank's longer term strategy for crypto, the news yesterday certainly appeared to impact the crypto markets.  

The Crypto Bears Jumped on the News

After Bitcoin prices had climbed back to over $7,300 from mid-August lows of just under $6,000, yesterday nearly all of those gains were wiped out. Over the course of the day Bitcoin lost nearly 13% of it's market value closing around $6,400. Bitcoin Price For September 5, 2018

All times Eastern; Data Source: https://bitcoincharts.com/ It wasn't just Bitcoin that saw wide-scale sell-offs yesterday — many of the top coins dropped significantly in price. Given that most trading in other coins such as Ethereum, Ripple, Bitcoin Cash, and EOS tend to be traded against Bitcoin the overall trend wiped out a huge amount of market capitalization for many of the top coins. Also, as of now most of the crypto market is highly correlated to Bitcoin not only because of the trading pairs, but also because its price tends to represents the overall sentiment on cryptocurrencies as a whole. Despite the ongoing volatility crypto markets face, the drop of over 10% is an extreme reaction to a news story based on unnamed sources of a single financial institution delaying plans for a crypto trading desk.

Are Crypto Markets Being Manipulated?

The large price movement in crypto markets yesterday has prompted some to wonder whether the markets are being manipulated. On September 2, just two days prior to the Business Insider article about Goldman's crypto trading desk, there was a large increase in Bitcoin short positions. In the span of about 3 hours, short positions on crypto exchange Bitfinex jumped by 10,000 BTC (worth around $74 million). Speculation is that someone with inside information about the impeding Goldman news took out the massive short position and would be able to profit from the inevitable price drop. Bitcoin Short Positions on Bitfinex for September 2, 2018

Source: Trading View Further to that, a CCN article outlines some of the unusual activity just prior to the sell-off seen in crypto markets tracked by Artificial Intelligence (AI) based RoninAi. The article raises some questions about spikes in 'social sentiment' (a measure of social media activity) which occurred just prior to the price drop. The speculation here is that those behind the $74 million short position could have magnified the price action on the news through social sentiment manipulation. As the dust has settled today on crypto markets some have called into question whether the 'people familiar with the matter' who spoke with Business Insider were actually familiar with anything going on at Goldman Sachs. https://twitter.com/IamNomad/status/1037682460157534208 So if everything at Goldman is business as usual with regard to the crypto trading desk, one begins to wonder when the nascent crypto markets will mature enough to realize the long-term value of crypto assets and stop jumping at shadows. Read the full article