A partner at a blockchain venture capital firm has proposed that a multitude of other banks will follow in the footsteps of Goldman Sachs and their decision to open a dedicated cryptocurrency trading desk. This move by Goldman Sachs marks a major milestone both in public adoption of cryptocurrency as well as Wall Streets openness to virtual currencies in general.

The partner in question is a member of Blockchain Capital, by the name of Spencer Bogart. His comments were made in an interview with the CNBC segment ”Fast Money”, and came following Goldman Sachs’ announcement this Thursday to open a trading station for Bitcoin contracts. Reportedly, this choice came following a large number of client requests that urged Goldman Sachs for a cryptocurrency trading option. Furthermore, Goldman Sachs recently acquired the cryptocurrency trader Jason Schmidt who will assist the firm’s client in working with cryptocurrencies.

Bogart, however, did not think that the investment bank’s decision was an ideal one. Rather, he argued that it might be unwise to ”all of a sudden now just open the floodgates to the institutionalization of Bitcoin”. Nonetheless, he ceded that this marks a major step in the right direction. If Bitcoin is to gain any serious ground on the trading floors of Wall Street, this is an absolutely necessary announcement.

Moreover, Bogart made it clear that the main driver in increased institutional adoption is now the Goldman Sachs name. Rather, it is the looming enormity of the Bitcoin and cryptocurrency market as a whole. Furthermore, Bogart hinted that another important aspect might be that banks are increasingly feeling threatened by cryptocurrency exchanges and want to open a gateway to accessing the large cryptocurrency market.

Bogart went on to highlight that traditional Wall Street banks are well-aware of the number of transactions and the revenue amount exchanges such as Binance or Coinbase are exhibiting. He noted that ”there is a real risk that some of those companies could overtake some of Wall Street’s biggest banks if they do not get in the market”.

So far, Goldman Sachs has only announced that they will be using derivatives products when it comes to cryptocurrencies. However, the next step would – according to Bogart – be to adopt and integrate direct Bitcoin trading. To gauge the long-term viability of the market, Bogart added that one needs to keep an eye on the flow of cryptocurrency transactions – will cryptocurrency move from hodlers to non-hodlers or in the opposite direction? We probably won’t have to wait for all too long to see whether Bogart’s predictions come to fruition.

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