Goldman Sachs is close to offering its first investment vehicles for Bitcoin and other digital assets, according to CNBC news agency. Moreover, this will be done for the clients of their private wealth management group.
It is reported that the banking giant intends to announce more news on this in the second quarter of 2021, which means more widespread adoption of blockchain assets awaits next.
The attention to cryptocurrency is huge now, but the trend is still at the initial stage of growth. To illustrate, consider the number of publicly traded companies that hold Bitcoin in their portfolio. At the moment there are 21 of them, among which there are Tesla, Square and Meitu.
At the same time, the total investment volume is $ 10.49 billion, which is also not much for a similar asset. Well, most of the 178 thousand bitcoins are owned by MicroStrategy, Tesla and Galaxy Digital.
This means that more and more people are interested in the blockchain asset. It is not surprising that the demand was noticed among the clients of large banks.
Goldman Sachs enters the crypto market
According to Mary Rich, Digital Asset Leader, Wealth Management, Goldman Sachs aims to offer a “full range” of investments in an emerging asset class, “whether it’s Bitcoin itself, derivatives or traditional investment vehicles.” Moreover, Rich added that Goldman Sachs clients have noticed the growth of the crypto market and are very keen to take part in it. Some of these clients “feel that in a sense, the world is at the dawn of a new Internet.”
In part, the surge in cryptoasset development has been driven by the macroeconomic environment the world has found itself in over the past year due to the ongoing COVID-19 pandemic. Here is an expert comment in which she shares the details of what is happening. The quote is from Decrypt.
There is a contingent of clients who look at this asset as a hedge against inflation, and the macroeconomic background over the past year has definitely played a role in this.
That is, Goldman Sachs sees how unstable the situation with the dollar has become against the background of its mass production. At the same time, cryptocurrencies are showing incredible profitability rates. For example, Bitcoin jumped 817 percent in exactly one year, while Ethereum, with its current rate of $ 1,916, generated 1338 percent growth in a year.
Also launched in September, the Uniswap exchange token UNI posted 2,700 percent growth from its bottom. The minimum rate at the level of $ 1.03 was recorded on September 17. Taking this into account, it is understandable why bank clients do not want to ignore the trend: such percentage of profitability in financial institutions does not happen corny.
Now Goldman Sachs will join Morgan Stanley, another global finance giant, in providing access to digital assets. Earlier this month, Morgan Stanley officials announced they would offer investors access to crypto funds. True, we are talking only about those clients whose capital exceeds the $ 2 million mark .
Mary Rich continues.
We are still in the early stages of the development of this ecosystem, and no one knows exactly how it will develop or what form it will take. But I think it is entirely possible to expect the cryptocurrency industry to become an important part of our future.
By the way, earlier Goldman Sachs did not even consider Bitcoin as an asset class, which was noticed on Twitter Documenting Bitcoin. Bankers adhered to a similar position in May 2020, that is, it took almost a year to change their point of view.
At the same time, the bull market and the growth of digital assets bring not only profit, but also losses from the increased activity of fraudsters. For example, the Irish police are currently investigating a group of scammers who fraudulently attracted investments in Bitcoin from their victims, and then gained control over their cryptocurrency wallets.
A recent search was conducted on properties in southern Dublin linked to suspects, some of whom are foreign nationals, sources said. The items seized included cash, jewelry and computers.
The police are still clarifying the exact amount of damage in bitcoins. However, according to preliminary information, the total amount of money transferred by the victims has already reached several million dollars.
We believe that the combination of these news shows the cryptocurrency industry from different angles, but at the same time it proves how early in its development it is. Indeed, many large companies still have not started investing in Bitcoin, but at the same time people are already being deceived in schemes related to cryptocurrencies. This means that the niche has room to develop. At the same time, the necessary attention has already been riveted to her.