- Goldman Sachs’ chief investment officer stated that the bank’s clients are not interested in cryptocurrency
- Despite the recent surge in crypto prices and increased involvement from traditional financial institutions, Goldman Sachs maintains its belief that cryptocurrencies are worthless
- The bank has consistently held a negative stance against cryptocurrencies, as it does not see any intrinsic value in the asset class itself
Recently, Goldman Sachs‘ Chief Investment Officer reiterated the company’s skeptical view on cryptocurrencies, saying clients have not expressed interest in the asset class. This comes despite the surge in crypto prices and growing involvement from other traditional finance giants.
Goldman Sachs Maintains Crypto is Worthless
The Wall Street Journal reported that Goldman Sachs’ Chief Investment Officer, Sharmin Mossavar-Rahmani, said clients have not been reaching out to ask about cryptocurrencies or express desire to invest in them.
“We are not hearing from our clients that they need crypto,” Mossavar-Rahmani said at the 2024 Delivering Alpha conference presented by CNBC and Institutional Investor.
This stance aligns with Goldman Sachs’ long-held negative view on cryptocurrencies. In 2018, Goldman Sachs started offering bitcoin futures trading, but was hesitant to further expand into crypto.
Mossavar-Rahmani reiterated the company’s skepticism about the inherent value of cryptocurrencies. “We still believe crypto itself doesn’t have a fundamental value,” she said.
Crypto Industry Growth Despite Goldman Hesitancy
Goldman Sachs’ ongoing dismissal of crypto comes even as the industry continues to grow. In recent years, major financial institutions like Fidelity Investments, BlackRock, and JPMorgan have started offering crypto services. Regulated crypto exchange-traded funds (ETFs) have also launched.
Bitcoin and other major cryptocurrencies saw huge price increases in 2023. The total crypto market cap surpassed $1 trillion again after crashing in 2022.
Conclusion
Despite the expanding crypto ecosystem, Goldman Sachs maintains its view that cryptocurrencies lack inherent value and remain uninterested. The bank’s clients apparently share this skepticism for now. However, if client demand and further institutional adoption continue growing, Goldman may eventually soften its stance to remain competitive.
