“Wealthy Clients Looking At Bitcoin As Inflation Hedge”- Goldman Sachs

Olivia Brooke
April 4, 2022
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Goldman Sachs

Leading global investment bank, Goldman Sachs has revealed that it is looking to present its clients with an opportunity to invest in Bitcoin and other cryptocurrencies.

In a recent CNBC interview, Mary Catherine Rich who was latterly appointed as global head of digital assets for the private wealth management division of Goldman Sachs, disclosed that the multinational investment bank plans to offer investments in BTC and other cryptocurrencies to its high net worth clients in the second quarter of this year.

Rich further noted, speaking with CNBC, that this move was majorly influenced by client demand. “There is a contingent of clients who are looking to this as a hedge against inflation”, she said.

It is unsurprising, though, seeing as economic events the past few years uncovered the shortcomings of fiat currencies regulated by central authorities.

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Goldman Sachs Has not Been Bitcoin’s Biggest Fan

On the other hand, what really did come as a surprise to the financial community was Goldman Sachs’ U-turn in its stance on Bitcoin after 2020 and other cryptocurrencies, and its growing interest in virtual assets.

Goldman Sachs is a leading global investment bank headquartered in New York with $2.1 trillion worth of assets under management as reported in 2020.

The Wall Street giant had, in 2020, published a report in which it explicitly stated that it did not recognize cryptocurrencies as a type of asset.

Leaks of slides in the report titled “US Economic Outlook & Implications of Current Policies for Inflation, Gold and Bitcoin” stated that cryptocurrencies do not show evidence of hedging against inflation among other perspective views, also noting further that cryptocurrencies are a “conduit for illegal activities”.

Goldman Sachs has since grown in its outlook of Bitcoin and cryptocurrencies at large. The bank recommenced its cryptocurrency trading desk early last year amid growing institutional interest in Bitcoin.

Mid-2021, it partnered with crypto investment company Galaxy Digital to begin trading bitcoin futures.

And just this year, Goldman Sachs analyst Zach Pandl postulated that Bitcoin will compete with gold as a store of value in 2022.

It is welcoming the growth the investment bank has made with regard to its perspective on Bitcoin and other cryptocurrencies; and no doubt, this will massively influence the outlook of other financial giants when it comes to digital assets.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Olivia’s interests spans across the Cryptocurrency and NFT and DeFi industry. She remains as fascinated by cryptocurrencies today, as she was back in 2017, when she first started reading up about them.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.