The Securities and Exchange Commission has indicated it views digital currency as a security, while the Commodity Futures Trading Commission says bitcoin is a commodity. The IRS, m
Solomon said in June that the bank is looking into adding further bitcoin and cryptocurrency services to its portfolio.
Goldman's move, if it does choose to offer custody for crypto funds, will see it go head-to-head with Japan's Nomura, Bank of New York Mellon, JPMorgan Chase, and Northern Trust — all of whom are thought to be working on or exploring custody offerings.
The news is the latest in a raft of reports that institutional money is gearing up to get into bitcoin and cryptocurrency and could provide further support for the upcoming Securities and Exchange Commission's (SEC) bitcoin exchange-traded fund (ETF) decision, which could come as soon as this month.
Last week it was revealed that U.S. coffee chain Starbucks is keen on getting its customers to use bitcoin and cryptocurrency and has teamed up with the New York Stock Exchange owner Intercontinental Exchange (ICE), software giant Microsoft and Boston Consulting Group to launch a digital platform called Bakkt.
Elsewhere, BlackRock, the world's largest asset manager, revealed last month it's keen on bitcoin and cryptocurrency with chief executive Larry Fink saying: "We are looking at it."
Bitcoin Dominance Nears 50% Even As The Price Plummets
Bitcoin's dominance — a measure of its total cryptocurrency market share — has continued to creep up over recent days, hitting year-to-date highs and approaching the psychological 50% mark for the first time since the massive bitcoin bull run in December last year.
This uptick in bitcoin's market share comes amid a bitcoin sell-off following the U.S. Securities and Exchange Commission delaying a decision on a proposed bitcoin exchange-traded fund (ETF) until September 30 at the earliest. It was previously expected some time in August.
The bitcoin price lost some $500 in around six hours last night on the back of the news — taking it to around $6,500.
A rise in bitcoin dominance essentially means bitcoin is more in demand compared to the alternative cryptocurrencies and an increase in bitcoin dominance could be seen as the start of a bull run, as it's a common route for fiat money to enter the cryptocurrency market.
Earlier this year there was a big rise in bitcoin's dominance — with so-called alt coins falling back across the board — ahead of the bitcoin price rising to highs of $8,400.
The bitcoin and cryptocurrency world has been eagerly awaiting the ETF decision after last year's bid by the Winkelvoss twins (of Facebook-founding and Gemini exchange fame) was shot down last year.
The ETF, if it happens, will be the first financial product of its kind and many expect it to open bitcoin and cryptocurrency investments to the mass market as an ETF tracks the price of an asset and is listed on an exchange — meaning investors don't actually have to buy the underlying asset.
The ETF has been proposed by investment firm VanEck and financial services provider Solid X and is VanEck's third attempt to push a bitcoin ETF through, having been rejected by the SEC twice previously.
Elsewhere, the bitcoin price, could be in for a boost after it was reported New York banking giant Goldman Sachs is mulling whether to get stuck into crypto.
Goldman Sachs is considering holding bitcoin and cryptocurrency securities on behalf of funds, according to an unconfirmed Bloomberg report.
"In response to client interest in various digital products we are exploring how best to serve them in this space," a spokesman for Goldman Sachs told Bloomberg. "At this point we have not reached a conclusion on the scope of our digital asset offering."Bitcoin, Bitcoin Cash And Ethereum Go To Washington
Cryptocurrencies, namely bitcoin, bitcoin cash and ethereum, are becoming accepted in the Washington D.C. halls of power — evidenced by the member of Congress and the chair of the House Judiciary Committee Bob Goodlatte's crypto holdings.
Goodlatte owns between $17,000 and $80,000 in cryptocurrency, according to his annual financial disclosure.
The filing was made in May, ahead of new rules from the House Ethics Committee requiring members of the House to disclose their ownership of cryptocurrency in annual reports, the same way they would disclose any other asset.
The new rules also require lawmakers to report cryptocurrency transactions within 45 days, as is given for other financial transactions.
Goodlatte’s son, Bobby Goodlatte, is reportedly an investor in cryptocurrency wallet provider and exchange Coinbase, though the details of Bobby Goodlatte's investment are not public.
Goodlatte is also a member of the Congressional Blockchain Caucus, co-founded by member of Congress Jared Polis (who also happens to be one of the richest Democrats, with an estimated net worth of $122 million, according to D.C. publication Roll Call).
People may take the news that another senior politician is investing in bitcoin and cryptocurrencies as a sign that crypto regulation in the U.S. could move in bitcoin's favor.
While some regulators and lawmakers have called for tightening regulations on digital currencies, there are several members of Congress who are proponents of the industry.
The U.S. — which handles the second largest volume of bitcoin by country, roughly 26%, according to Cryptocompare — is currently inconsistent in its definitions of bitcoin and other cryptocurrencies.
The Securities and Exchange Commission has indicated it views digital currency as a security, while the Commodity Futures Trading Commission says bitcoin is a commodity. The IRS, meanwhile, says cryptocurrency is not actually a currency and defined it in 2014 as property and issued guidance on how it should be taxed.
Investors will be hoping that as bitcoin holders and believers made their way on to Capitol Hill regulation will be clarified, easing business and personal use of crypto.The Bitcoin Price Could Be In For A Boost From Fresh Institutional Support
The bitcoin price, which has been wallowing around the $7,000 mark since a sell-off last week, could be in for a boost after it was reported New York banking giant Goldman Sachs is mulling whether to get stuck into crypto.
Goldman Sachs is considering holding bitcoin and cryptocurrency securities on behalf of funds, according to a Bloomberg report.
"In response to client interest in various digital products we are exploring how best to serve them in this space," a spokesman for Goldman Sachs told Bloomberg. "At this point we have not reached a conclusion on the scope of our digital asset offering."
If Goldman holds the securities on behalf of the funds it would reduce the risk for clients — one of the biggest barriers to entry for potential bitcoin and cryptocurrency investors.
Many have been looking forward to positive bitcoin and cryptocurrency news coming out of Goldman Sachs after the appointment of David Solomon as the bank's new chief executive.
Solomon said in June that the bank is looking into adding further bitcoin and cryptocurrency services to its portfolio.
Goldman's move, if it does choose to offer custody for crypto funds, will see it go head-to-head with Japan's Nomura, Bank of New York Mellon, JPMorgan Chase, and Northern Trust — all of whom are thought to be working on or exploring custody offerings.
The news is the latest in a raft of reports that institutional money is gearing up to get into bitcoin and cryptocurrency and could provide further support for the upcoming Securities and Exchange Commission's (SEC) bitcoin exchange-traded fund (ETF) decision, which could come as soon as this month.
Last week it was revealed that U.S. coffee chain Starbucks is keen on getting its customers to use bitcoin and cryptocurrency and has teamed up with the New York Stock Exchange owner Intercontinental Exchange (ICE), software giant Microsoft and Boston Consulting Group to launch a digital platform called Bakkt.
Elsewhere, BlackRock, the world's largest asset manager, revealed last month it's keen on bitcoin and cryptocurrency with chief executive Larry Fink saying: "We are looking at it."