Latest Goldman Sachs Survey Shows Institutional Demand For Crypto Product is High
A recent survey by the US Investment banking giant, Goldman Sachs Group Inc has revealed that a growing percentage of core banking clients are now positively inclined towards cryptocurrencies.
As reported by Bloomberg quoting Matt McDermott, global head of digital assets for Goldman Sachs Global Markets Division, about 40% of the 300 clients surveyed by the bank already have exposure to crypto, stirring a bullish case for a run in price such as has never been recorded before.
McDermott lends credence to the ongoing claims by the bank to resume its crypto trading desk, an investment vehicle that will be limited in scope due to the extant United States regulations.
Blockchain as an emerging technology offers “a real diverse set of opportunities for the financial industry and something that there’s a huge amount of momentum” for in the market, McDermott said. “We know firsthand just given the various different projects we’re working on. And we see this as a hugely exciting time exploring the potential of that technology.”
Banks have been given backing by the Office of the Comptroller of the Currency (OCC) to be involved in the crypto custodial services, but no direct involvement in physical cryptocurrency investments. This will make the firm base its offerings on derivatives products and futures trading.
The demand for Bitcoin by institutional investors takes a deep footing from the price expectations most have. According to McDermott, 76% of those surveyed see Bitcoin ending 2021 between $40,000 and $100,000. However, 22% expect it to end the year over $100,000.
Institutional Influx Riding on Goldman Sachs Trading Desk
The presence of Goldman Sachs in any investment niche is a positive bull case scenario, which most investors will use as a driving force to get engaged with crypto.
The United States already has a handful of corporate investors placing a part of their excess cash reserve into Bitcoin, a trend that is trickling down to other nations. Firms who adopted Bitcoin early on have seen a massive return on their investment, a scenario that presents Bitcoin and to a limited extent other cryptocurrencies to be a perfect hedge against the impending monetary inflation.
While firms like the electric automaker, Tesla Inc and Paypal Holdings have massive support for crypto with professed structures to accept the coins as a means of payment for services, the Goldman Sachs trading desk will afford less renowned business entities the opportunity to also ride the train.