Goldman Sachs chief investment officer Sharmin Mossavar-Rahmani recently stated in an interview with the Wall Street Journal that the company does not consider Bitcoin to be an investment asset class. Despite the growing acceptance of cryptocurrency among traditional financial institutions, such as BlackRock and Fidelity, with the launch of products like a spot Bitcoin ETF, Goldman Sachs remains skeptical and old-school about Bitcoin. Mossavar-Rahmani questioned the value of Bitcoin, stating that it is difficult to be bullish or bearish on an asset whose value cannot be assigned. Additionally, she mentioned that clients have not shown much interest in Bitcoin.
However, it was reported that Goldman Sachs’ hedge fund clients have been showing increased interest in cryptocurrency derivatives recently, driven by the resurgence of the crypto market. The bank officially launched its crypto trading desk in 2021 and began facilitating various types of Bitcoin-linked trades, including Bitcoin non-deliverable futures and CME BTC futures. Currently, Goldman offers cash-settled Bitcoin and Ether option trading, as well as CME-listed Bitcoin and Ether futures. Despite this, the bank does not directly trade the actual underlying crypto tokens themselves.
Max Minton, who serves as Goldman’s Asia Pacific head of digital assets, stated in an interview that the recent approval of ETFs has reignited interest and activity among the bank’s clients. Minton noted that many clients are already active in the crypto space or are considering entering it. There has been a noticeable increase in client interest, onboarding, pipeline, and trading volume since the beginning of the year. It is clear that the demand for digital products, including cryptocurrencies, is there among clients of Goldman Sachs.
In 2021, it was revealed that Goldman Sachs, ICAP, JPMorgan, and UBS had all purchased the first exchange-traded product (ETP) in Europe that provided exposure to Polkadot’s DOT cryptocurrency for clients. This indicates that while Goldman Sachs may be discreet about its involvement in the cryptocurrency space, the company does see value in exploring these types of investments for its clientele. Despite remaining skeptical about Bitcoin specifically, the bank has been actively participating in the cryptocurrency market through various instruments such as derivatives and futures.
The recent trading frenzy in the crypto market has raised some eyebrows and sparked interest among financial institutions like Goldman Sachs. While the company may not consider Bitcoin an investment asset class, the increased demand for digital products, along with the approval of ETFs, has led to a surge in client interest and activity. The participation of prominent financial institutions in the cryptocurrency market, even if discreetly, highlights the growing acceptance and integration of digital assets into traditional financial systems. Goldman Sachs remains cautious but engaged in the evolving landscape of cryptocurrency investments.
