Goldman Sachs Is Looking to Offer Clients Bitcoin and Other Digital Assets
The American investment bank and financial services company, Goldman Sachs, is getting close to offering investments in Bitcoin and other digital assets, this according to Mary Rich, recently named head of digital assets for the wealth management division of the company.
According to Ms. Rich, the bank plans to provide emerging assets investments sometime during the second quarter of the year.
After her promotion was announced, she noted that the firm is working closely with in-house teams as they explore various ways in which private wealth clients could be provided with access to the ecosystem. She noted the firm expects to offer this facility soon.
Ms. Rich went on to say that Goldman Sachs is ultimately looking to provide clients with a full spectrum of investments in digital assets, including Bitcoin. The provision of the asset could be via derivatives, traditional investment methods, or the physical coin.
With this announcement, clients of both Goldman Sachs and Morgan Stanley will be in a position to access an asset class that is of considerable interest to believers in digital currency, and billionaires alike. Earlier in March, financial advisors were told that Morgan Stanley would be in a position to place clients into Bitcoin funds beginning in April.
Bitcoin is Here to Stay
This move is the latest in a host of signs indicating that bitcoin and other blockchain assets are here to stay.
As is well known, bitcoin is a type of money, albeit new. Bitcoin emerged from the train-wreck known as the 2008 financial crisis. Bitcoin was supposedly invented, or created, by either a sole individual or a group of people going under the name Satoshi Nakamoto.
Until recently, big banks in the U.S. and elsewhere have shunned Bitcoin. The crypto has been deemed far too risky or too speculative for clients. However, the banking industry is being forced to contend with crypto as a result of the rapid ascent and adoption among the investment community.
With Bitcoin being up over 75 percent year-to-date, the rapid increase has drawn the attention of investors. The attraction is not difficult to understand. During the same period, the DJ Industrial Index has risen a paltry 2.9 percent, the S&P 500, up 4.4 percent, and Nasdaq up only 8.3 percent.
According to Ms. Rich, client demand forced the issue. The private wealth management group at Goldman’s deals with individuals and/or families with $25 million or more to invest.
Ms. Rich suggests the macro backdrop since the onset of the pandemic has driven a certain group of investors to see Bitcoin or other cryptocurrencies as a hedge against inflation. She went on to say that there is a considerable number of clients who are of the opinion that they are witnessing the dawn of new investment opportunities, and they are researching ways in which they can participate.
Bitcoin Investment Funds
Similar to that done by Morgan Stanley, Goldman Sachs may offer Bitcoin investment funds. Goldman is looking at other ways to invest, including round-the-clock trading. Ms. Rich points to some funds, that can only be purchased or sold once per quarter.
Goldman is in the process of getting approval from the Security and Exchange Commission. Although the eventual outcome is still unknown, Ms. Rich believes it is safe to expect that Bitcoin will be a part of the company’s future.
Up until as little as a year ago, the market cap and trading volume of crypto were not of a magnitude that was of importance to banks. According to the CEO of Galaxy Digital, adoption is now happening far faster than anyone could have predicted.