Bitcoin may be a bubble. It sure looks like one to Ray Dalio. Even its most ardent admirers think so. But as the dot-come bubble and subprime mortgage bubble and, well, every other bubble in history teaches, there is money to be made on bubbles. And Goldman Sachs? Yea, it needs to make some more money. So where Jamie Dimon sees a stupid fad and firing offense, Lloyd Blankfein sees an opportunity. After all, if online lending and retail banking and robo-advising and cross-selling are worth a shot, surely bitcoin can’t hurt, not when everyone wants in on the action. Plus, first!
Goldman Sachs Group Inc. is weighing a new trading operation dedicated to bitcoin and other digital currencies, the first blue-chip Wall Street firm preparing to deal directly in this burgeoning yet controversial market, according to people familiar with the matter….
Goldman’s seeks to serve a growing cadre of institutional investors wagering on bitcoin. Its effort could eventually entail a team of traders and salespeople making markets in bitcoins much as they do Japanese yen or shares of Apple Inc.