Benzinga - Goldman Sachs Group remained a lone wolf on Wall Street when it comes to cryptocurrency, holding firm to its negative stance despite a recent surge in prices and increasing interest from other financial giants.
What Happened: Sharmin Mossavar-Rahmani, the chief investment officer of Goldman Sachs’ Wealth Management unit, has long been a vocal skeptic of Bitcoin and other digital assets, and her views haven’t softened.
In an interview with the Wall Street Journal, she reiterated her position: “We do not think it is an investment asset class. We’re not believers in crypto.”
This stance stood in stark contrast to Goldman’s competitors like BlackRock Inc. and Fidelity, which have recently expanded their crypto offerings in response to client demand.
According to Mossavar-Rahmani, Goldman Sachs’ clients haven’t expressed interest in crypto exposure.
One of the core reasons for her skepticism lies in the difficulty of valuing cryptocurrencies.
“If you cannot assign a value, then how can you be bullish or bearish?” she questioned.
Mossavar-Rahmani further criticized the crypto industry for its supposed hypocrisy. “They all proclaim democratization of finance, yet the main decisions end up being driven by a few controlling people,” she stated.
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While Goldman Sachs remained on the sidelines, many of its peers are actively exploring the crypto space. JPMorgan Chase launched a blockchain platform in 2020, with a team exceeding a current 100 employees.
Similarly, Citigroup is venturing into private fund tokenization.
Navigating the Evolving Crypto Landscape: A Look Ahead The contrasting approaches of Goldman Sachs and other financial institutions highlight the ongoing debate surrounding cryptocurrencies.
As the market evolves and regulations develop, investors are left to navigate a complex landscape.
The upcoming Benzinga’s Future of Digital Assets conference, scheduled for Nov. 19, 2024, offers a valuable platform to gain insights from industry leaders.
This conference will provide a forum to discuss the latest trends in cryptocurrency, featuring expert analysis and guidance to help investors make informed decisions in this ever-changing environment.
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