Goldman Sachs chief investment officer Sharmin Mossavar-Rahmani recently expressed skepticism towards Bitcoin, stating that the bank is not a believer in cryptocurrency as an investment asset class. While many traditional financial institutions have been embracing the idea of cryptocurrency and launching products such as spot Bitcoin ETFs, Goldman Sachs remains old-school and questions the value of Bitcoin. Mossavar-Rahmani pointed out that without being able to assign a value to Bitcoin, it is difficult to make any bullish or bearish predictions. She also mentioned that clients have not shown much interest in Bitcoin, despite recent trading frenzies.
In contrast to Goldman Sachs’ skepticism, there is a growing recognition of the demand for digital products in the financial industry. Many traditional financial institutions, including BlackRock and Fidelity, have launched products related to cryptocurrency, and there has been increased interest in crypto derivatives among hedge fund clients. Goldman Sachs officially launched its crypto trading desk in 2021 and began facilitating various Bitcoin-linked trades, including Bitcoin non-deliverable futures and CME BTC futures. Currently, the bank offers cash-settled Bitcoin and Ether option trading, as well as CME-listed Bitcoin and Ether futures.
Max Minton, Goldman’s Asia Pacific head of digital assets, noted that the recent approval of ETFs has reignited interest and activity among the bank’s clients. Many clients are either already active in the crypto space or considering entering it, leading to a noticeable increase in client interest, onboarding, pipeline, and trading volume since the beginning of the year. Despite their skepticism towards cryptocurrency, Goldman Sachs has discreetly dabbled in the space, with reports emerging that the bank, along with other major financial institutions, purchased the first exchange-traded product (ETP) in Europe that offered exposure to Polkadot’s DOT cryptocurrency for clients in 2021.
While Goldman Sachs continues to remain old-school in its approach towards cryptocurrency, other financial institutions have embraced the idea of digital assets as an investment asset class. The demand for digital products is evident in the industry, with many traditional financial institutions launching products related to cryptocurrency. In contrast to Goldman Sachs’ skepticism towards Bitcoin, there has been increased interest in crypto derivatives among hedge fund clients, leading to the bank’s official launch of its crypto trading desk in 2021. The recent approval of ETFs has reignited interest and activity among Goldman’s clients, with many considering entering the crypto space.
