News and resources on digital currencies, crypto assets and crypto exchanges worldwide.
Goldman Sachs to re-open crypto desk as institutional demand surges

Goldman Sachs to re-open crypto desk as institutional demand surges

Goldman Sachs is to re-activate its crypto trading desk after detecting huge institutional demand for bitcoin among its client base.

In a podcast, Matt McDermott, Goldman Sachs’ head of digital assets, says that a UK survey of 300 of the firm's clients found that 40% of them have holdings in crypto.

Fully 61 percent expect their digital asset holdings to increase over the next year, with bitcoin leading the way.

“I think it’s pretty fair to say that all of our institutional client discussion is really focused around bitcoin,” he says. “Where the questions are not really ‘what is it?’, thankfully, it’s more about how can we get exposure, what are the instruments we can transact, and what is Goldman offering today?”

A recent research primer by JPMorgan suggested that bitcoin could rally as high as $146,000 in the long term as it competes with gold as an 'alternative' currency.

McDermott believes that bitcoin’s current rally is markedly different than the late 2017 bubble, that saw it zoom close to $20,000 a coin, only to sink as low as $3,122 the next year. This is largely because of demand from private banking clients and institutions.

“When we talk about institutional demand, we talk about the whole cross section of the industry sectors,” he says. "And when I talk about the broad spectrum, I’m referring to hedge funds, to asset managers, to macro funds, to banks, to corporate treasurers, insurance, and pension funds.”

Comments: (1)

Chandrakanth Natekar
Chandrakanth Natekar - Temple of Humanity - Shravanabelagola 08 March, 2021, 17:23Be the first to give this comment the thumbs up 0 likes

My dear Goldman Sachs, this is not 2008. Even cryptocurrency or gold cannot save the economy, since it is the demand and supply network of the market condition that has reached the saturation point, not the financial system. At any given moment, bubbles of the economy will explode and the entire monetary system will officially fall into a great depression. As a result, all currencies will lose their complete value. No government can give salaries to the military and police force. Gautama Buddha says, “Whatsoever has originated will be dissolved again. Ego is a mirage; it vanishes like a nightmare when the sleeper awakes.”