‘We’re not believers’: Goldman Sachs doubles down on crypto skepticism despite Wall Street embracing Bitcoin ETFs

Sharmin Mossavar-Rahmani, Chief Investment Officer Goldman Sachs Wealth Management, he told a Wall Street Journal in an interview this week that despite the recent hype around Bitcoin ETFs his firm is not buying into it.

“We don’t believe in crypto,” he said. “We don’t think it’s a financial group.”

“If you can’t allocate value, how can you be sustainable or sustainable?” he added. What makes him hate cryptocurrencies is the difficult task of valuing them, because they do not generate profits, profits, or cash flow, Journal report.

Having managed thousands of advisors, clients, and traders over the past 23 years in his position at a top investment bank, he told the newspaper that clients are aware of the company’s anti-crypto activities and avoid seeking advice on how to sell. space, even Bitcoin reached an all-time high of $73,737 last month, according to CoinGecko data.

Mossavar-Rahmani said that he sees crypto as a speculative currency and does not see the merits in unregulated markets: “Legal authority and a system of checks and balances are necessary.”

But Mossavar-Rahmani’s views are at odds with others in traditional finance, who are incorporating—albeit slowly—crypto into their offerings, and against rumors that Goldman may be too friendly to the media.

“Although Goldman Sachs may not have a developed view of Bitcoin or the digital economy as a long-term investment in businesses, they are connecting to the environment from the natural resources,” said Matt Ballensweig, managing director and CEO of BitGo’s Go Network. related to the financial analysis section of the bank.

The global bank’s chief financial officer, Mathew McDermott, he told Reuters in December that he expects a “significant increase” in the trading of blockchain-based assets within the next year or two, and he has also seen an increase in customer interest in the trading of crypto derivatives.

“Regardless of the view, the big banks have to serve the needs of their customers, and we see this happening now,” added Ballensweig.

Somewhere on the road

Since the Securities and Exchange Commission approved 11 Bitcoin exchanges in January, two of the sales have been made by major asset managers from Wall Street: BlackRock Images iShares Bitcoin Trust (IBIT) is Fidelity is Wise Original Bitcoin Fund (FBTC).

Due to the opportunity to give money to high-income people and establish customers, all these funds are leading the race for the fastest Bitcoin ETF, with funds that are collecting about $ 60 billion in assets under management so far, according to BitMEX data from Monday. Of these, IBIT and FBTC have raised more than $17 billion and $10 billion, respectively – the fastest ETF in history to reach this milestone.

Also, when Mossavar-Rahmani may publicly oppose investing in crypto, in January CoinDesk also reported that Goldman Sachs was in talks to be accredited (AP) at Grayscale and BlackRock ETFs, a service that involves the creation and exchange of ETF shares to ensure that the stock market is closely related to their assets.

Other Wall Street players are lining up to fill the role.

BlackRock’s AP roster includes high-speed Jane Street trading and JPMorgan, SEC documents show. Fellow ETF provider Valkyrie has also teamed up with Jane Street and Cantor Fitzgerald to fill AP positions, another one. reservation demonstrations.

Meanwhile, in the same month, a Nasdaq, Price CBOE, and NYSE Arca have both filed 19b-4s for approval by the SEC to allow the sale of related products, according to information on their websites. On top of this, in February, CoinDesk report that bank bank Morgan Stanley he says he wants to add more Check out Bitcoin ETFs to its brokerage platform. The Wall Street behemoth is said to be cautious about the investment, according to sources close to the matter. If approved, Morgan Stanley would be the first among the major registered investment advisor (RIA) networks and trading platforms to list ETFs, which could open doors for the likes of Merrill Lynch or Wells Fargo turbocharger inputs.

“These networks and platforms are a market that can be traded for Bitcoin that ETFs should always be open to. We are aware of other large wirehouses or advisory platforms that have approved some of these ETFs for sale already,” Bloomberg analyst James Seyffart said. Chance. “I think most platforms, if not all, will accept this.”

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