Several firms in Wall Street are halting their plans to make money from the Bitcoin Mania. Several companies are going back after they witnessed a drop in the value of the virtual coins.

The progress of Goldman Sachs Group Inc. has been very slow to the extent of being barely noticeable. However, some state that it is too much to expect a crypto offering from Wall Street based on the Frenzy of the past year.

Daniel H. Gallancy, CEO of New York-based SolidX Partners, stated, “The market had unrealistic expectations about Goldman or any of its peers to suddenly start a Bitcoin trading business.”  He further added, “That was top-of-the-market-hype thinking.” Of note, SolidX Partners are hoping to launch a Bitcoin ETF in the US.

However, Goldman is continuing to be the focal point of expectations when it comes to adoption of crypto. 

People who were familiar with Goldman have to state that they were the first among others in Wall Street to clear Bitcoin Futures. They were preparing a trading desk, and they even went to the extent of providing an interview on their plans to New York Times. The firm even considered providing a custody service for their crypto funds.  They invested in the custodian BitGo Holdings Inc.  Derivatives were offered in Bitcoin, which was also known as non-deliverable forwards.

Justin Schmidt was hired to lead the digital assets business, and he stated that regulators were limiting what he can do.  Goldman is continuing to add a specialist in the digital asset to its prime brokerage division.  

There are different types of tokens, and the regulators are not giving a clear picture of how they will be classifying them across different categories. Criminal probes are not happening, and those who are already into business are proceeding cautiously.

The bank has signed up to 20 clients, and they are yet to offer crypto trading.  They have got a little traction for their NDF product.

Morgan Stanley has been technically ready to provide swap tracking of Bitcoin futures ever since last September. However, they have not yet traded even a single contract. One of the people who is familiar with the situation stated that the deals would be launched the sooner there is institutional client demand. Of note, Andrew Peel was hired as the head of digital assets, by Morgan Stanley.

London based Barclays Plc that had announced an interest on the crypto trading desk is silent about the process.  They are back to square one, and there are no more signs of them launching a platform anytime now.

Despite the large setback and sell off, cryptoanalysts are continuing to see signs of institutions potentially ready if they think they need to.