Goldman Sachs: Bitcoin demand among clients increases significantly
US banking giant Goldman Sachs recently decided to relaunch its cryptocurrency trading desk. This is said to have led to increased demand for digital assets among its clients.
According to a report by Reuters, John Waldron, the head of operations at Goldman Sachs, said the firm was looking at how it could meet the rising demand from clients looking to Bitcoin Legacy invest in bitcoin (BTC). The head of operations said Goldman Sachs would „continue to evaluate“ crypto for clients and „engage in it“.
Matt McDermott, the global head of digital assets at Goldman Sachs‘ global markets division, also said on Friday that 40 percent of Goldman investors had invested in crypto to at least some degree.
Goldman is also said to be currently exploring the launch of an exchange-traded bitcoin fund, as well as other digital asset custody options
Waldron said the current pandemic has been „a significant accelerator“ in terms of online purchases and is likely to cause an „explosion“ in digital currency payments.
Some people in the crypto space see Goldman Sachs‘ re-entry as a negative indicator for BTC. The investment management firm originally set up its crypto trading desk at the height of the bull run in 2017. As a result, the bitcoin price fell significantly.
Us old-timers have learned that whenever @GoldmanSachs enters a market niche it is time to guard your money. $BTC pic.twitter.com/tHfRkS4igb
– Peter Brandt (@PeterLBrandt) March 1, 2021
However, many people have pointed out that the crypto market Goldman faces in 2021 is different from the market that prevailed four years ago.
Large companies have now adopted bitcoin as a reserve currency. The regulatory environment in the United States may also be more favourable for crypto under Joe Biden’s administration. On Wednesday, the US Senate Banking Committee voted in favour of pro-crypto candidate Gary Gensler as chairman of the US securities regulator SEC.