According to a recent report published by Bloomberg, Wall Street is slowly backing out of the crypto market. The market has earned a bad reputation due to repeated reports of fraud and imminent regulatory crackdowns.
However, this was not always the case, as there was a time when Wall Street had begun to embrace the rise of cryptocurrencies.
Last year, when the crypto industry enjoyed what was probably the biggest bull run in its history, it seemed a lot of mainstream financial companies were also ready to join the bandwagon.
Names like Goldman Sachs, Fidelity Investments and Barclays Bank Plc. were all in favor of the crypto market as it enjoyed the highest level in its decade-long history.
Daniel H. Gallancy, chief executive officer of New York-based SolidX Partners says that the market had unrealistic expectations that Goldman Sachs or any of its Wall Street peers could suddenly start a Bitcoin trading business.
“That was top-of-the-market-hype thinking.”
New York-based Citigroup Inc. also reportedly built a crypto product to help asset management firms and hedge funds, and to reduce the risk related to crypto investments. The product named the Digital Asset Receipt was meant to provide innovative means to investors for keeping tabs of their investments and offer an extra layer of legitimacy and trust.