Goldman Set To Offer Bitcoin To Its Richest Customers

Goldman Sachs is set to offer its first investment vehicles for bitcoin and other digital assets to clients in its private wealth management group, CNBC has exclusively learned.

The bank aims to begin offering investments in the emerging asset class in the second quarter, according to Mary Rich, who was recently appointed global head of digital assets for Goldman’s private wealth management division.

His promotion was to be announced Wednesday in an internal company memo seen by CNBC.

“We are working closely with the company’s teams to explore ways to offer thoughtful and appropriate access to the ecosystem for private clients, and this is something we plan to offer in the short term, ” Rich said this week in an interview.

Goldman seeks to eventually offer a “full spectrum” of investments in bitcoin and digital assets, “whether through physical bitcoin, derivatives or traditional investment vehicles,” she said. .

The move means that soon, clients of two of the world’s largest investment banks – Goldman and Morgan Stanley – will have access to a nascent asset class that has intrigued billionaires and digital currency enthusiasts. Earlier this month Morgan Stanley told his financial advisers they can place clients in Bitcoin funds starting in April, CNBC was the first to report.

It is the latest sign of the longevity of blockchain-related assets, including bitcoin, a new type of money that emerged from the wreckage of the 2008 financial crisis and whose exact origins are still unknown. So far, major U.S. banks have mostly avoided bitcoin, deeming it too speculative and volatile for customers.

But after the latest bitcoin price boom has attracted institutional investors, businesses, and fintech players, and the infrastructure for holding digital assets continues to mature, the industry has capitulated. Ultimately, it was customer demand that won the day, according to Rich.

“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.”

Goldman’s private wealth management business primarily targets individuals, families and endowments with at least $ 25 million to invest.

The bank may offer bitcoin investment funds, similar to the ones Morgan Stanley will have, as well as other means of investing that are “closer to the underlying asset class which trades around the clock at globally, ”Rich said. Some crypto funds, such as the Galaxy Bitcoin Fund, can only be sold or bought once per quarter, she said.

“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.”

This story is developing. Please come back for updates.