Goldman Sachs’s home page now reads, “From cryptocurrencies to the metaverse, explore the megatrends that are reshaping economies”. The investment bank has featured information on cryptocurrencies and metaverses, which is quite the change in the narrative given how Wall Street was not exactly well disposed towards cryptocurrencies in the past.
The “Digitization” page leads to the “Insights” section which now contains information about Web 3.0, along with metaverses. A caveat? Yes. This move, in particular, raised eyebrows among netizens.
Investment banks such as Goldman Sachs have always remained quite wary of cryptocurrencies as they have believed that these digital currencies are pretty susceptible to wild volatility, hacks, and even illegal activities.
So, Is Goldman Sachs Warming Up To Crypto?
Goldman Sachs has come a long way from its initial judgement about Bitcoin. The bank had previously refused to consider Bitcoin as an asset class.
Over the last year, Goldman Sachs had started its crypto-friendly journey by re-introducing its Bitcoin trading desk which led to positive institutional demand for BTC. Last week, Goldman Sachs completed its first over-the-counter Bitcoin cash-settled transaction with Galaxy Digital. The bank had also introduced its derivative trading desk and formed its cryptocurrency trading team last year.
The bank has also termed cryptocurrencies as an “Investable Asset”, so along with a fair bit of competition between traditional finance and digital finance; the bank has struck healthy cooperation too.
In fact, it is not only Goldman Sachs that has started to warm up to the idea of crypto, other banks such as JP Morgan and Bank of America have displayed similar strategies. Not to forget that crypto exchanges such as Coinbase and FTX have been receiving steadfast support from retail investors, helping them secure big banks with each passing day.
Related Reading | Why This Centennial Israel Bank Has Enabled Crypto Trading
What Does This Mean For Adoption Rates?
Wall Street shows signs of bullishness on crypto with all the latest developments. This step by the major investment bank is sure to fuel further adoption of cryptocurrencies and digital assets.
The over-the-counter trade 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 year June, Galaxy Digital announced that it shall be Goldman Sach’s liquidity provider for bitcoin futures block trades on the Chicago Merchantile Exchange (CME).
Institutional Investing has seen a gallop from an alleged $120 billion to $1.4 trillion over the past two years marking a 170% jump.
With Wall Street banks changing their stance on crypto, investors in the crypto space could possibly experience exponential growth. Recently Morgan Stanley also provided its clients access to three Bitcoin products which translates into a transparent and direct exposure to the price of Bitcoin.
Related Reading | Florida Will Allow Citizens To Pay Taxes In Bitcoin