Great questions @furious-one re GS. I've tried to view these type of transactions purely from a strategic/legitimacy perspective as most others cover the other angels. As you nicely noted "big players are now actively taking part of the cryptocurrency revolution.", it appears that GS jumped in with both feet. This acquisition further supports many thoughts by my colleagues and I that Wall Street has been playing both sides of the crypto "trade", just like the old days of otc stocks or more akin to the Junk Bonds back in the 80's to mid-90's. Slam the asset class you want to get involved in, buy cheap and go long, establish strategic positions and then formally support the asset class through M&A, cap markets, market making (legitimacy/liquidity), research/analysis (recommendations) and long term investors (individuals/ investor funds). We have heard that certain proprietary trading desks at both Wall Street firms and hedge funds have been accumulating crypto positions. With this acquisition, GS is clearly supportive and indirectly involved (due to regulatory issues, they should not have directly ownership now, etc.). This is yet another step towards greater legitimacy and acceptability. Lets now see what JPM, CB and the others to counter GS jumping in.
Meanwhile just the day before the acquisition on Jan 25th, as typical oin Wall Street, Goldman's Senior Strategist for Global Investment Research released a video about the Bitcoin "bubble".
https://www.facebook.com/goldmansachs/videos/10155852419177247/
I self upvoted to push up my comment higher for your thoughts.
Thank you, you summarized all nicely. I am fairly sure that Wall Street whales have been in cryptos for a while and playing both sides, like they have done in other markets. And as the cryptocurrencies get more regulated, they have more and more "legit" and direct ways of raking in the profits from these markets.
So true and inline with your comments on more reg, more legit..... I have heard (and you likely have as well) that Circle has briefed the SEC that they will begin the process of registering Poloniex as a new entity with the SEC and FINRA as a B-D and in turn as a licensed ATS. They will be the first. In tern the SEC was favorable and indicated that they would not pursue any enforcement actions for prior activity. This may be the template going forward.
Huh, thanks, i hadn't heard of that yet. Appreciate it.