US banking giant Goldman Sachs recently decided to restart its cryptocurrency trading desk. This has reportedly resulted in increased customer demand for digital assets.
Goldman Sachs’ chief operating officer, John Waldron, is investigating how to meet growing demand from customers looking to invest in Bitcoin (BTC), according to a Reuters report. The chief operating officer said Goldman Sachs will “continue to evaluate” and “activate” the crypto for customers.
Matt McDermott, global director of digital assets at Goldman Sachs’ Global Markets Division, also said Friday that 40% of Goldman investors have at least some exposure to crypto.
Goldman is also reportedly considering launching an exchange-traded Bitcoin fund, as well as other digital asset custody options. Waldron said the current pandemic has been “a significant accelerator” to online purchases and is likely to cause an “explosion” in payments in digital currencies.
Some in the crypto space consider Goldman’s re-entry as a bearish indicator of BTC. The investment management firm originally set up its crypto trading desk at the height of the 2017 bull run. After that, the price of Bitcoin fell significantly.
We classic cars have learned that when @GoldmanSachs steps into a niche market, it’s time to protect your money. $ BTC pic.twitter.com/tHfRkS4igb
– Peter Brandt (@PeterLBrandt) March 1, 2021
However, many have pointed out that the crypto market Goldman faces in 2021 is arguably different than it was four years ago.
Large companies have now introduced Bitcoin as a reserve asset. The regulatory environment in the US could potentially also be more favorable to crypto under Joe Biden’s administration. On Wednesday, the U.S. Senate Banking Committee voted for pro-crypto candidate Gary Gensler as chairman of the Securities and Exchange Commission.
