Goldman Sachs’ homepage now reads, “From cryptocurrencies to the metaverse, explore the megatrends that are reshaping economies”. The investment bank has provided information on cryptocurrencies and metaverses, which is quite a change in the story given that Wall Street has not been particularly favorable towards cryptocurrencies in the past.
The “Digitalization” page leads to the “Insights” section which now contains information about Web 3.0, along with metaverses. A warning? Yes. This move in particular raised the eyebrows of netizens.
Investment banks like Goldman Sachs have always been quite wary of cryptocurrencies as they believed that these digital currencies are quite prone to wild volatility, hacks and even illegal activity.
So, Is Goldman Sachs Warming Up For Crypto?
Goldman Sachs has come a long way since his initial verdict on Bitcoin. The bank had previously refused to consider Bitcoin as an asset class.
Over the past year, Goldman Sachs had started its crypto-friendly journey by reintroducing its Bitcoin trading desk, leading to positive institutional demand for BTC. Last week, Goldman Sachs completed its first over-the-counter cash-settled Bitcoin transaction with Galaxy Digital. The bank had also launched its derivatives trading desk and formed its cryptocurrency trading team last year.
The bank has also referred to cryptocurrencies as an “investable asset” so along with a fair amount of competition between traditional finance and digital finance; the bank has also established a healthy partnership.
In fact, it’s not just Goldman Sachs that started to warm to the idea of crypto, other banks like JP Morgan and Bank of America have shown similar strategies. Not to mention that crypto exchanges like Coinbase and FTX have gained steadfast support from retail investors, helping them secure major banks every day.
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What does this mean for the adoption figures?
Wall Street is showing signs of bullishness on crypto with all the latest developments. This move by the major investment bank is sure to boost further adoption of cryptocurrencies and digital assets.
The over-the-counter trading partnership between the bank and Galaxy Digital sends only positive signals to institutional investors. The valued relationship between Galaxy Digital and Goldman Sachs reflects trust and reliability.
Last June, Galaxy Digital announced that it will be Goldman Sach’s liquidity provider for bitcoin futures block trades on the Chicago Merchantile Exchange (CME).
Institutional investing has seen a rise from a reported $120 billion to $1.4 trillion in the past two years, representing a 170% jump.
As Wall Street banks change their stance on crypto, investors in the crypto space could potentially experience exponential growth. Recently, Morgan Stanley also offered its customers access to three Bitcoin products, which translates into transparent and direct exposure to Bitcoin’s price.
BTC bullish could see $45k. Image source: BTC/USD on TradingView
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