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Global investment bank Goldman Sachs sees huge institutional demand for bitcoin with no signs of slowing down. A survey of Goldman’s institutional clients shows that 61% plan to increase their cryptocurrency holdings. Meanwhile, 76% say the price of bitcoin could reach $ 100,000 this year.
Goldman Sachs sees no sign of institutional demand for Bitcoin reduction
In a podcast released Friday, Mathew McDermott, head of digital assets for the Global Markets division of Goldman Sachs, discusses the cryptocurrency business environment for institutional investors.
He explained that his team had conducted a cryptocurrency survey of the firm’s institutional clientele, from “hedge funds to asset managers, macro-funds, banks, corporate treasurers. , insurance and pension funds ”. He clarified that “all of our discussions with institutional clients are really focused on bitcoin”.
His team received responses from 280 institutional clients and released the survey results this week. “What’s been particularly interesting,” according to McDermott, is that “40% of customers are currently exposed to cryptocurrencies,” which he explained could take any form of “ physical to derivatives, to securities products or other offerings in the market. ”The executive revealed:
In terms of institutional demand, we have not seen any sign of slowing down… We are seeing huge institutional demand, [and] this is also reflected in the field of private wealth management.
He further described that “corporate treasurers, for example, are interested in two different aspects”. The first is whether they should “invest in bitcoin on their balance sheet,” McDermott detailed, citing that “the main drivers from their perspective are negative rates … [and] just the general fears about devaluation of assets. “
In addition, he said they were also thinking, “should we think of it as a payment mechanism?” … Particularly in the context of Tesla’s announcement. Elon Musk’s electric car company Telsa said it invested $ 1.5 billion in bitcoin in January and will soon accept cryptocurrency as a payment method for its products.
Among institutional clients exposed to crypto, the survey shows that 41% own physical or point crypto. McDermott pointed out:
61% of customers expect their holdings of digital assets to grow over the next year.
As for what prevents institutions from investing in cryptocurrencies, 34% of respondents believe that “regulations, internal investments, mandate authorizations” are the biggest obstacles to starting to allocate crypto assets. 24% believe the lack of well-regulated, investable crypto assets is the biggest obstacle.
Most Goldman Institutional Clients Expect Bitcoin Price To Hit $ 100,000 This Year
When it comes to the future outlook for cryptocurrencies, 54% of respondents predict that the price of BTC will be between $ 40,000 and $ 100,000 in 12 months, while 22% predict it will be above $ 100,000. This price point is not exaggerated as several fund managers are predicting the same, including Skybridge Capital and Mike Novogratz.
“In terms of price, I think bitcoin is very difficult to predict. It’s not an easy hobby, ”McDermott said, adding:
The survey was quite insightful in that 76% agreed that the price by the end of the year would be between $ 40,000 and $ 100,000… But, 22% expected more than $ 100,000.
“I recently participated in a similar survey with a private roundtable and the results echoed something quite similar where 33% predicted over $ 80,000 by the end of the year,” he said. added the Goldman executive.
The global investment bank recently restarted its Bitcoin trading desk. McDermott confirmed that the office will start handling Bitcoin futures and undeliverable forwards for clients. Goldman’s global head of commodities research, Jeff Currie, recently said that the bitcoin market “is starting to become more mature,” calling the cryptocurrency a “retail inflation hedge.”
What do you think of Goldman Sachs’ point of view on bitcoin? Let us know in the comments section below.
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