Goldman Sachs (NYSE:GS) May Extend Digital Assets Trading
The price of cryptocurrencies rebounded Wednesday on reports that Goldman Sachs (NYSE:GS) may expand the digital assets that it intends on trading on its cryptocurency platform signaling renewed optimism in the nascent market.
Currently, Bitcoin is trading at 6,749.2549,+118.38, or +1.79%, as of 2:39a BST, the market is open.
Gains came even after South Korea’s Bithumb, the 6th largest cryptocurrency in the world according to the data said “some cryptocurrencies worth about 35-B won, or $31-M were stolen between late Tuesday and early Wednesday.”
The theft marks the 2nd of its kind within 2 weeks after Coinrail said it had $40-M worth of altcoins stolen on 11 June, and underlines concerns outsiders have with the digital-currency market.
Goldman Sachs’ COO David Solomon said client demand may see the bank trade more than just futures.
“We are clearing some futures around bitcoin, talking about doing some other activities there, but it’s going very cautiously,” said Mr Solomon in an interview. “We’re listening to our clients and trying to help our clients as they’re exploring those things too.”
On 3 May Goldman announced they were opening a cryptocurrency trading desk, which many proponents of digital currencies characterized as a watershed moment for the industry.
The Big Q: Why are exchanges prone to hacks?
The Big A: Some lack of adequate security might play a role in the exchange hacks, but the transactional process makes Bitcoin and other cryptocurrencies a prime target for hackers.
One disadvantage to Bitcoin is its immutability. Once a transaction happens, it can never be undone, which is one of the reasons cryptocurrencies can be a target for hackers
However, immutability is also one of Bitcoin’s most attractive qualities. The fact that it operates transparently and independently is a clear advantage for many investors.
Coins other than Bitcoin, known as altcoins, showed small gains in afternoon trading.
- Ether ETHUSD, +0.48% rose 0.7% to $534.44
- Bitcoin Cash BCHUSD, +1.12% was up 0.1% at $889.80
- Litecoin LTCUSD, +0.06% was unchanged at $98.07.
- XRP XRPUSD, +0.20% the coin that runs on the Ripple protocol, is trading at 54c, up 0.2%.
Futures finished slightly higher Wednesday. The Cboe July Bitcoin futures contract XBTN8, +0.04% closed up 0.1% at $6,757.50, while the CME June contract BTCM8, -0.07% finished the day at $6,745, up 0.1%
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