Goldman Sachs COO: Bitcoin adoption will ‘explode’
A Goldman Sachs executive says the investment bank is increasingly Bitcoin-bullish. But final doubts have not yet been dispelled.
Among Goldman Sachs clients, people are increasingly betting on Bitcoin. An interview with the Reuters news agency reveals that the US investment bank has been gaining strong momentum in The News Spy cryptocurrencies for some time. According to Chief Operating Officer (COO) John Waldron, customer demand for Bitcoin and Co. is on the rise. They are trying to meet the increased interest, but have to be careful to comply with all regulatory requirements. That is not always easy.
Last but not least, the COVID 19 pandemic is also responsible for the increased interest in digital assets and online trading. After all, people have much more time for experimental investments and online shopping these days. It is not to be expected that this trend will be exhausted any time soon, according to the Goldman board member. On the contrary, Goldman Sachs expects an “explosion” in demand for digital assets like Bitcoin.
The pandemic was a major accelerator. There is no question in our mind that there will be more trading in digital money.
Most recently, the New York investment bank had relaunched its Bitcoin trading desk. Clients have thus been able to trade BTC derivatives such as futures and forwards again since the beginning of March this year. According to a recent survey of Goldman clients, 40 percent of investors are already invested in crypto assets. The study also revealed a surprisingly bullish attitude among Goldman investors. 76 per cent of those surveyed see the BTC year-end price between 40,000 and 100,000 US dollars. As many as 22 percent even expect prices beyond USD 100,000. It is no wonder that Waldron speaks of an “explosion” in crypto demand.
Goldman is nevertheless plagued by doubts
Goldman Sachs and Bitcoin have sometimes had an ambivalent relationship. Most recently, the notorious volatility of Bitcoin has been a source of contention in the ranks of the US bank. Bitcoin had “matured” but was still not stable enough in price, according to Jeff Currie, Global Head of Commodities Research. For the cryptocurrency to come of age, more institutional investors need to enter the market.
The key to creating some sort of stability in the market is to see an increase in institutional investor participation and right now it’s small.
Whether institutional demand for BTC and co. is really still that small, however, is questionable. After all, news of well-funded investors entering the crypto market reaches us on a weekly basis. For example, the Norwegian energy company Aker ASA founded a subsidiary that focuses on Bitcoin.