Goldman Sachs, the world’s largest investment bank, is officially planning to offer the first investment funds for bitcoin (BTC) and other undisclosed cryptocurrencies to members of its private wealth management division in the second quarter.
According to CNBC, the bank is preparing to deliver a “full range” of cryptocurrency investment opportunities, “whether that would be digital bitcoin, derivatives, or conventional investment vehicles,” citing Mary Rich, Goldman Sachs’ private wealth management group has appointed new global head of digital assets.
She noticed that many clients see the crypto currency asset as a buffer against deflation and feel optimistic about it and the macro backdrop. However, there is also “a huge ratio of customers who feel like we’re sitting at the dawn of a modern Internet in some respects and are searching for ways to invest in this space.”
According to people familiar with the matter, Goldman is in the process of obtaining licenses from regulators such as the Securities and Exchange Commission and the New York Department of Financial Services.
As reported in March, Goldman said that there had been a rising demand for Bitcoin in the private wealth management sector, not just among investment firms.
“I believe that it’s fair to say that all of our discussions with institutional clients are just about bitcoin. Thankfully, the problems aren’t really, ‘What is Crypto?’
It’s all about how we can get chance to participate in it, “What are the tools we should transact and what is Goldman offering today?” said Mathew McDermott, Head of Digital Assets for Goldman Sachs’ Global Markets Division at the time.
In addition, as previously announced, Goldman Sachs is reactivating its crypto trading desk and will
Start dealing with their Bitcoin and related digital currency services to facilitate their client.
It is the latest indication of the staying power of assets linked to Cryptocurrency, including Bitcoin, a new form of money arising from the wreckage of the financial crisis in 2008 that has not yet come to light.
Big banks in the United States shunned Bitcoin to date, which was considered too risky and unreliable for customers.
However, after the most recent Bitcoin market surge, the industry capitulated.
The surge has been fuelled by institutional investors, companies, and technology stakeholders to get an abundance of digital assets to get maximum profit in the future as predicted by daily growth in its worth.
According to Rich, in the end, it was client demand that actually prioritized and given value. Goldman’s private wealth administration company is mainly targeted at individuals, families, and firms with a minimum investment of 25 million USD.
The bank may offer Bitcoin investment funds, same as Morgan Stanley, and other investing opportunities can also be considered, which are “more similar to the asset class that trades 24-7 worldwide,” said Rich.
Some crypto funds, like the Bitcoin Fund for Galaxy, can not be purchased or exchanged once a quarter, while the Bitcoin Fund for Galaxy can be used regularly.