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November 29, 2022
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Goldman Sachs endorses Bitcoin as new asset class

Goldman Sachs the financial giant has officially recognized the potential of Bitcoin as an investment vehicle.

O report includes comments from Goldman Sachs members, including GS Global Head of Digital Assets, Matthew McDermott.

McDermott says that “Bitcoin is now considered an investable asset.“He added that Bitcoin”has its own idiosyncratic risk”Due to its novelty and the fact that its price activity does not behave as expected when compared to other assets.

McDermott continued to note that Bitcoin “tended to be more aligned with risky assets”. He also says that “customers and [outros] are treating [o Bitcoin] as a new asset class”.

Elsewhere, GS commodities analyst Mikhail Sprogis and GS commodities research chief Jeff Currie argued that cryptocurrencies can act as a store of value “only if they have other uses in the real world”. They added that the value is determined by the size and growth of each network, along with the information these networks verify.

Other experts comment on BTC

GS senior multi-asset strategist Christian Mueller-Glissman suggested that if Bitcoin’s risk / reward ratio continues, it could become an asset that adds value to investor portfolios.

Finally, GS co-director of Globax FX, Rates and EM Strategy Zach Pandl argued that the potential adoption of Bitcoin will come from his “strong brand”Along with security, privacy and other features.

The report also features additional comments from several industry leaders, including Michael Novogratz, CEO of Galaxy Digital, and Michael Sonnenshein, CEO of Grayscale Investments.

Goldman Sachs joins crypto

The Goldman Sachs report comes along with its plans to enter the cryptocurrency business. On May 7, the company revealed that it had executed its first crypto trading through its long-awaited trading desk.

The company previously planned to launch cryptocurrency products and services in 2018, but those efforts have stalled.

Goldman Sachs joins several other financial giants in offering cryptocurrency services. Other notable banks with encryption offerings include JP Morgan, Wells Fargo and BNY Mellon.

Source: CryptoBriefing

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