Goldman Sachs, one of the leading investment banks in the world, announced today that the bank is planning to offer cryptocurrency investment services in the second quarter of 2021. Goldman Sachs restarted its cryptocurrency trading desk earlier this month.
According to a report published by CNBC, Goldman Sachs aims to offer investment vehicles for Bitcoin and other cryptocurrency assets to clients of the bank’s private wealth management group. Goldman Sachs is currently considering all options for its investment services, including physical bitcoin, derivatives and traditional investment vehicles.
“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. Goldman is looking at ultimately offering a full spectrum of investments in bitcoin and other cryptocurrency assets,” Mary Rich, Global Head of Digital Assets for Goldman’s private wealth management division told CNBC.
The cryptocurrency assets reached a total market cap of $1.9 trillion yesterday after the recent jump in Bitcoin, Ethereum and Binance Coin.
The latest announcement from Goldman Sachs came after Morgan Stanley announced earlier this month that it is planning to offer its wealthy clients access to Bitcoin funds. Institutional money is driving the recent jump in Bitcoin and other cryptocurrency assets. Several institutions around the world have accumulated digital assets in large amounts since the start of this year. Investors also consider cryptocurrency assets as a hedge against rising inflation.
“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. There is also a large contingent of clients who feel like we’re sitting at the dawn of a new Internet in some ways and are looking for ways to participate in this space,” Rich told CNBC.