Goldman Sachs Considers Offering BTC Products To Rich Clients

Goldman Sachs considers offering BTC products to its wealthy clients and according to the global head of digital assets Mary Rich, the bank will aim to offer these investments in the number one cryptocurrency as early as this quarter so let’s find out more in our latest Bitcoin news today.

Mary Rich explained:

 “We are working closely with teams across the firm to explore ways to offer thoughtful and appropriate access to the ecosystem for private wealth clients, and that is something we expect to offer in the near term.”

As BTC and the broader market surged to new highs, the institutional demand skyrocketed as well. In a survey by Goldman Sachs Global Markets Division, about 40% of its clients are already exposed to crypto while Goldman Sachs considers allowing the investors to get even more exposure to BTC and will open a crypto trading desk that offers derivative-based BTC futures to its clients.

With the growing mainstream acceptance of cryptos, the asset management companies are turning to wealthy clients and with the recent inflation fears and rise in treasury yields, the investors are looking for investments to hedge against the dollar as Rich noted:

 “There’s a contingent of clients who are looking to this asset as a hedge against inflation, and the macro backdrop over the past year has certainly played into that.”

Even for the conservative clients, BTC became a more attractive investment than gold with the crypto surging 600% in 2021 whereas the precious metal lost 11% this quarter. Michael Novogratz who is the founder of Galaxy Digital shared similar sentiments and explained that crypto will continue gaining traction and will eventually replace gold:

 “[i]t could be as much as a trillion dollars over the next year from that giant group of wealth.”

Whether this will play out, remains to be seen but considering the latest developments and the rise in institutional adoption, Bitcoin’s adoption as an investment vehicle is inevitable. Also as reported recently, Goldman Sachs filed for an ETF with the US Securities and Exchange Commission and reportedly got a petition approval for an exchange-traded fund with the option to add more exposure to Bitcoin. According to the document filed with the Securities and Exchange Commission, with an ARK innovation structure and a filing date set for March 19, 2021, the financial product will be called Autocallable Contingent Coupon ETF-Linked notes.