Benzinga - by Rounak Jain, Benzinga Staff Writer.
Goldman Sachs Group Inc.'s (NYSE:GS) Sharmin Mossavar-Rahmani, who is the chief investment officer of the private wealth management group at the investment bank, thinks that Bitcoin ETF approval does not make the cryptocurrency a legitimate investment option.
What Happened: Mossavar-Rahmani likened investing in Bitcoin (CRYPTO: BTC) to visiting Las Vegas and betting.
"If you want to go to Las Vegas, great," she said, according to a report by The Wall Street Journal.
Just like betting, she considers Bitcoin as a "total speculation" avenue, not for serious investing.
"People can use it if they want for total speculation, but it is not an investment, and people should not be investing in cryptocurrencies, in Bitcoin, in the ETF, as part of an investment portfolio."
She echoed similar sentiments in a webinar, according to Reuters. "When you think about it, where is there any value to something like Bitcoin? We don't think it is an asset class to invest in."
Noted economist Peter Schiff also underlined the high volatility of Bitcoin following a false announcement of Bitcoin ETF approval by the U.S. Securities and Exchange Commission chair Gary Gensler.
"With so many speculators expecting a rally, it's hard to believe the market will deliver," he said.
#Bitcoin spiked near $48K then dumped near $45K following a hacked @GaryGensler post announcing the approval of #BitcoinETFs. An actual approval is expected tomorrow. With so many speculators expecting a rally, it's hard to believe the market will deliver. Better to sell today.— Peter Schiff (@PeterSchiff) January 9, 2024
Why It Matters: Mossavar-Rahmani's comments come at a time when Goldman Sachs did not apply for the Bitcoin ETF, after reportedly considering it.
The investment bank has previously advised its clients to stay away from cryptocurrencies, stating that they are not an asset class and that they are highly volatile.
This is evident from the pullback that Bitcoin has experienced since the ETF approval – it is currently trading under $43,000 after crossing $49,000 earlier on Thursday.
The pullback surprised Schiff, too, who said, "So far sell off in #Bitcoin, #BitcoinETFs, and other Bitcoin-related equities has been surprisingly orderly. I wonder when the selling will become more aggressive."
Read Next: Kevin O’Leary Expresses Doubts About Bitcoin ETFs Despite Recent Success: ‘They Add No Value To Me’
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