Goldman Sachs reportedly jumps on the bitcoin bandwagon

Discussion in 'Cryptocurrencies' started by johnarb, Mar 31, 2021.

  1. johnarb


    Morgan Stanley is selling bitcoin investments to their HNW clients, now it's Goldman Sachs.

    We also got other big players in bitcoin BNY, Blackrock, Guggenheim and Fidelity

    PayPal, Square and Visa involved in bitcoin and cryptos. Tesla, Microstrategy and Square among a number of corporations that have bought bitcoin for their treasury holdings

    There's a lot more stuff showing the incredible adoption of bitcoin and cryptos

    Yet we have people here on ET that keep talking about government banning bitcoin or the exchanges or what have you

    I hear it in personal conversations, that's a message that is out there and all it does is prevent ordinary people from investing in bitcoin when institutional investors and hnw individuals are in a hurry to get into this space

    All I can say is that you have to DYOR. The information is out there and if you're not digging into it, you might miss some key information

    Goldman Sachs reportedly jumps on the bitcoin bandwagon
    By Ramishah Maruf, CNN Business

    Updated 12:09 PM ET, Wed March 31, 2021

    Mary Rich, who is about to become the new global head of digital assets for Goldman Sach's private wealth management division, said in an interview with CNBC Wednesday that Goldman will begin offering cryptocurrencies to investors sometime in the next three months. Goldman will announce Rich's new position Wednesday, according to an internal company memo shared with CNN.

    "In this newly-created role, she will work closely with advisors to educate clients about blockchain technology and the digital assets ecosystem, and seek to deliver content, investment offerings and services," the memo said.
    Goldman Sachs (GS) is looking at a wide spectrum of investments, ranging from "physical bitcoin, derivatives or traditional investment vehicles," Rich said in the CNBC interview.

    The private wealth management division is catered toward the wealthiest — those with a minimum of $25 million to invest. Rich said this decision by the bank was driven by what consumers demanded. Bitcoin's price has skyrocketed, topping the $60,000 mark in mid-March. Bitcoins in circulation are worth more than $1 trillion.
    "There's a contingent of clients who are looking to this asset as a hedge against inflation, and the macro backdrop over the past year has certainly played into that," Rich said. "There are also a large contingent of clients who feel like we're sitting at the dawn of a new Internet in some ways and are looking for ways to participate in this space."

    Crypto's rising popularity

    The decision by Goldman shows major financial institutions are beginning to embrace cryptocurrencies after years of skepticism due to its volatile nature. CNBC reported earlier in March that Goldman's rival Morgan Stanley will offer its wealthy clients access to bitcoin funds, the first major US bank to do so.

    But other companies have been cashing in on cryptocurrencies. Tesla (TSLA) is now accepting bitcoin as payment, and disclosed it had purchased $1.5 billion in the cryptocurrency as part of its cash holdings. Meanwhile, Uber (UBER) and Mastercard (MA) also said they plan to start accepting bitcoin. BNY Mellon and BlackRock are looking into bitcoin. And Jay Z and Twitter CEO Jack Dorsey announced they are establishing a bitcoin development fund.

    As more financial institutions invest in bitcoin, more companies are expected to join. Some investors believe that it could be a good hedge against inflation and a weak dollar. The Federal Reserve cut interest rates in March 2020, severely weakening the US dollar and shooting up the price of bitcoin.
    "We're still in the very nascent stages of this ecosystem. No one knows exactly how it will evolve, or what shape it will be," Rich said. "But I think it's fairly safe to expect it will be part of our future."
    Bitcoin is currently trading at $58,394.86, down 0.58%.
    Trader Curt likes this.
  2. ET180


    They'll trade dog shit if they can earn a good commission on it.

    As far as government banning it...ask yourself if you really believe that the CCP will abandon their ambitions for full surveillance, social credit score, and control over their currency in favor of a highly volatile, inefficient currency that they cannot control. Same with US that relies heavily on having the reserve currency status. Big governments seek more power and control. Bitcoin opposes that.
  3. johnarb


    marginalize and switch the discussion to grandiose speculations. classic fud
  4. Daal


    The more they allow the bitcoin virus run loose in corporate america, the harder will be to ban later
    johnarb likes this.
  5. johnarb


    US lawmakers that want to ban bitcoin will have some very powerful opposition and tbh, some of the lawmakers are bitcoiners themselves

    The ET bitcoin fudsters are creating an imaginary monster to justify missing out on bitcoin and cryptos

    Fidelity was mistakenly left out of the list below but there are many others and the list keeps growing

    Trader Curt likes this.
  6. RedDuke


    Imagine for a second, you are the one who missed the boat. Would you have the nerve to get in now? Honest question.
  7. johnarb


    My answer without hesitation is Yes!

    When I first got in, it was over $100, there was hardly any adoption, which means, bitcoin did not have any use. There was no PayPal, no Guggenheim, no Square, no CME, no Bakkt, no BlockFi

    What did bitcoin have? Oh we had PayPal banning our transactions, our banks, freezing our accounts, credit cards declining our transactions when dealing with bitcoin

    We also had JP Morgan, Morgan Stanley, Goldman Sachs talking all kinds of shits about bitcoin

    Imagine what was going through my mind after reading about this digital asset, that the biggest use-case was for the darknet markets and by the way, they are charging over $100 per bitcoin when it was pennies a few years before and a few dollars 6 months before???

    Ask S2007 what he thought of the price in 2013, he also thought he missed the bitcoin boat

    The price now may seem expensive compared to the past, but focus on the adoption which is more important

    Bitcoin at this price with so much going for it is a less risky investment than bitcoin when it was $100 with nothing significant going for it
    Sprout and MrMuppet like this.
  8. RedDuke


    thanks for such a passionate reply, but no risk is much higher now as always in crowded trade.
    johnarb likes this.
  9. narafa


    I disagree, by relative comparison, Bitcoin is not a crowded trade as of now. Hardly 1% of the investment population are in Bitcoin as of now. Compare that to FAANG or other techs and you can see that almost more than 50% of Robinhood accounts are invested in FAANGs and many other tech names. I would estimate that 50%-60% of retail investors are invested in traditional tech companies one way or another, this is the true crowded trade now.

    Cryptos (Bitcoin included) are still not a crowded trade despite the late massive runs.
    johnarb and Sprout like this.
  10. Sprout


    I agree with this sentiment. Mid-cap and especially micro-cap moonshots are happening everyday.
    #10     Apr 1, 2021
    johnarb likes this.