- The mass adoption of Bitcoin, and some Altcoins, has resulted in institutional investors looking to take crypto and digital asset investments to the next level.
- The investment banking giant Goldman Sachs (NYSE:GS) Inc. has revealed that it will expand its crypto investment roster to include Ether.
- The bank is fulfilling its earlier promise in March to offer digital assets to its wealth management clients.
- Crypto enthusiasts are lauding the move by the bank as it seeks to get a slice of the metaphorical crypto pie.
As the worldwide crypto frenzy continues to grow exponentially, traditional institutional investors, who were initially slow to offer crypto options, are beginning to “see the light.”
Goldman Sachs is making good on the promise it made back in March to offer digital assets, including Bitcoin and Altcoins, to its wealth management clients in the second quarter of 2021.
The company has further announced that it will be expanding into Ether in the coming months. Ether, the native coin of the Ethereum network, is ranked at #2 on CoinMarketCap’s list of crypto by market capitalization.
Ethereum is the largest blockchain in terms of the number of dApps running on the platform, which stands at over 3000 and counting. Ether is viewed as the next most viable investment for the bank which has already marked its presence in the crypto space with Bitcoin.
Goldman Sachs Push Onwards to Ether
Big banks always follow the money and crypto will be no different. Although they are late in entering the game as a result of regulatory concerns, Goldman Sachs Inc. is taking its crypto push to the next level.
The investment bank has revealed that it plans to offer futures and options trading in Ether as its focus shifts to expanding into other options from its current bitcoin offering. Mathew McDermott, the Head of Digital Assets of Goldman Sachs, has stated that clients see these options as a great entry point as the bank ends its three-year hiatus from cryptocurrencies.
The bank recently relaunched its bitcoin trading desk, having been inactive for three years, which will allow clients to trade futures tied to bitcoin as promised in March. More banks and institutional investors are stepping up to offer digital assets to their big-money clients even amid concerns about regulations and high volatility, among other things.
Though Bitcoin has plummeted from its record high of over $64,000 down to $33,000 in 2021 alone, banks and investors are still prepared to back digital assets.
On the Flipside
- Competition from other big banks will make it difficult for Goldman Sachs to dominate the market.
- The likes of J.P. Morgan Chase, Morgan Stanley (NYSE:MS), and others, have also ventured into the crypto market with Bitcoin funds.
- Cryptocurrencies are highly volatile and could potentially lead to clients losing huge amounts of money as we’ve seen in the past.
A Good Move for the Future?
This year could be described as turbulent at best for cryptocurrencies, with both good and bad news leading to unstable asset prices.
The moves being made by institutional investors are promising for digital assets as it will inevitably result in an influx of money to the market, leading to an increased market capitalization.
The market capitalization of cryptocurrencies surpassed $2.5 trillion earlier this year before the fall in May. Institutional investors have the ability to push the value of bitcoin and other digital assets further than they’ve been before.
Ether surged to over $3,000 in value earlier this year, and this news will likely lead to another rally. Ether is the fuel of the Ethereum network, which houses over 3000 dApps, and would be a wise investment for banking giants.
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