Gold Rush
Goldman Sachs is one of the biggest investment banks in the world, and over the years their investments have changed a lot to keep up with changing times and technologies. The latest of these trends sees Goldman getting into none other than crypto.
With commercial investors piling into crypto more than ever before even when accounting for the recent pullbacks, large institutional investors have taken a step into crypto as well. Goldman has specifically begin trading bitcoins futures with a crypto merchant bank called Galaxy Digital. A crypto merchant bank are banking institutes that process digital money-related activities such as deposits, withdrawal, lending, borrowing, saving, and investing in a wide range of markets.
The partnership will bring new things to Goldman, one of which is a way for clients of Goldman to wager on bitcoin using derivativesโฆ thatโs right crypto derivatives. Now if you donโt know what that means, well letโs just say itโs probably a risky investment and not suited for most people.
One of the main reasons the crypto derivative is coming to existence is because Goldman feel enough clients are asking for the product. Despite this, however, not everyone within Goldman is happy about it. In fact, even some senior level leaders such as the bankโs chief investment officer for wealth management has called bitcoin a bubble that isnโt appropriate for investors. What do you think about big banks entering cryptocurrency? And does this change your future outlook for cryptocurrency?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.