Goldman Sachs to start offering bitcoin to high net worth clients

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Mary Rich, who is set to become the new global head of digital assets for Goldman Sach’s private wealth management division, said in an interview with CNBC on Wednesday that Goldman would start offering cryptocurrencies to investors at over the next three months. Goldman will announce Rich’s new position on Wednesday, according to an internal memo shared with CNN.

“In this newly created role, she will work closely with advisors to educate clients on blockchain technology and the digital asset ecosystem, and will seek to provide content, investment offerings and services,” said the memo.

Goldman Sachs (GS) examines a wide range of investments, ranging from “physical bitcoin, derivatives or traditional investment vehicles,” Rich said in the CNBC interview.
The private wealth management division caters to the wealthiest – those with a minimum of $ 25 million to invest. Rich said the bank’s move was driven by what consumers demand. The price of Bitcoin has skyrocketed, surpassing the $ 60,000 mark in mid-March. Bitcoin in circulation is worth over $ 1 trillion.

“There is a contingent of clients who look to this asset as a hedge against inflation, and the macroeconomic backdrop of the past year certainly played into that,” Rich said. “There are also a lot of customers who feel like they are sitting on the cusp of a new internet in some way and are looking for ways to participate in that space.”

The Growing Popularity of Crypto

Goldman’s move shows that major financial institutions are starting to embrace cryptocurrency after years of skepticism due to its volatile nature. CNBC announced earlier in March that Goldman’s rival Morgan Stanley would offer its high net worth clients access to bitcoin funds, the first major U.S. bank to do so.

But other companies have taken advantage of cryptocurrencies. You’re here (TSLA) now accepts bitcoin as payment and has revealed that he purchased $ 1.5 billion worth of cryptocurrency as part of his cash holdings. Meanwhile, Uber (UBER) and MasterCard (MY) also said they plan to start accepting bitcoin. BNY Mellon and BlackRock take a look at bitcoin. And Jay Z and Twitter CEO Jack Dorsey announced the creation of a Bitcoin development fund.
Everything you need to know about Bitcoin

As more financial institutions invest in bitcoin, more companies are expected to join. Some investors think this could be a good hedge against inflation and the weak dollar. The Federal Reserve cut interest rates in March 2020, severely weakening the US dollar and pushing up the price of bitcoin.

“We are still in the very early stages of this ecosystem. No one knows exactly how it will evolve, or what form it will take, ”said Rich. “But I think it’s pretty safe to expect that to be part of our future.”

Bitcoin is currently trading at $ 58,394.86, down 0.58%.

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