According to the head of digital assets at Goldman Sachs, this goes beyond the retail-driven Bitcoin hike in 2017
Institutional interest in bitcoin defines the latest bullish run at a level beyond the 2017-driven retail boom, according to Matt McDermott of Goldman Sachs.
The global head of digital assets for Goldman’s global markets division said in a podcast that his team saw an “enormous volume of institutional demand across a wide spectrum of different types of industry” for digital assets during the current BTC race.
In 2017, retail investor interest boosted the market, said McDermott. Now, he has had “well over 300 conversations” about digital assets with institutional clients, including hedge funds, asset managers, banks, corporate treasurers, insurance and pension funds. Most of these conversations are focused on bitcoin and how investors can get exposure, said McDermott.
Corporate treasurers, for example, are interested in whether they should add bitcoin to their balance sheets. McDermott said this issue skyrocketed after news that Tesla invested $ 1.5 billion in cryptocurrency.
The head of digital assets also said that much of the institutional demand was driven by “general fears surrounding the devaluation of assets”. Bitcoin’s fixed offer positions it as a hedge against inflation, say cryptocurrency enthusiasts.
In addition to simply asking about it, many institutional clients are very optimistic about BTC. According to a research published by Goldman last week, 22% of its customers expect the price of bitcoin to reach at least $ 100,000 in the next 12 months. McDermott also said the survey revealed that 61 percent of customers expect their digital assets to appreciate next year.
Bitcoin was traded almost $ 51,000 on Monday morning.
Source: Markets Insider