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RE: Lloyd Blankfein still has Bitcoin on his mind
If they say they are going to invest in them, they are probably going to manipulate the market into making bitcoin sink and they will be shortening it. Always think opposite to what the big money let's out. They wouldn't tell you the truth ever. They want your money, conflict of interest.
One of my main questions too. Will institutions come into the market and simply play with derivatives (so they can tell clients they do not hold "volatevil" crypto)? Or will they want to own the underlying asset so as to not be the odd man out should crypto moonshot?
My thinking right now is that they will short the market (once options come out later this year), buy the underlying asset on sale, and then look to flip at the top. Rinse and repeat. In this process, they will undoubtedly hold the underlying asset for longer term in case of a moonshot (and as a possible hedge to broad market decline). By doing so they will inevitably add more overall liquidity to the market which makes for more appreciation in the long run. What do you think? I plan to write a post about this very soon. Still structuring my thoughts.
I would bet that they would trade mostly the derivatives, however, they will probably own some of the underlying at some point.
Shorting it adds liquidity and it ultimately adds upward momentum when they eventually get squeezed.
yeah seems like Mark Cuban is following the same strategy, blow off the cryptos, and buy in the meantime.
It should also cut off some of the downside volatility. Pitty really they are usually great buying opportunities.