U.S banking giant Goldman Sachs is inching closer to offering its first investment products for bitcoin and other digital assets. This development represents a significant shift in the bank’s policy, which initially stated that bitcoin and cryptocurrencies were not an asset class.
Investment Product to Be Launched in Q2
This latest development from Goldman Sachs was reported on March 31 by the U.S. media outlet CNBC. Goldman Sachs intends to offer crypto-assets products to clients of its private wealth management group from Q2 2021.
The report also quoted a recent interview with Mary Rich, a recently named global head of digital assets at Goldman Sach private wealth management division. According to Mary, the private wealth management division worked in synergy with other teams within the bank to proffer the best way to offer access to crypto-assets for its private wealth clients.
She also stated that the bank was looking to offer a diverse range of investments within the cryptocurrency sector.
“Goldman is looking at ultimately offering a “full-spectrum” of investments in bitcoin and digital assets, whether that’s through the physical bitcoin, derivatives or traditional investment vehicles,” she stated.
Rich further continued that the shift in policy was due to the increasing interests in bitcoin and cryptocurrencies. This was largely due to the recent crypto boom and the covid-19 pandemic which affected global finances.
“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,” she added.
Major Signs of Things to Come
Goldman Sachs admission of bitcoin and crypto-assets for clients continues the growing adoption of cryptocurrencies in the financial space. Many traditional finance firms have had no option other than integrating crypto services or risk being left behind by the new innovation.
Institutions have begun to offer regulated products and more firms have announced new services in this regard. Goldman Sachs’s main rival Morgan Stanley has already started to provide crypto-based products to clients. There is bound to be a ripple effect in the investment banking sector as more banks look to expand their financial vehicle products.