News - Goldman Sachs remains skeptical about crypto

By Luc Vesters

Goldman Sachs remains skeptical about crypto

Bitcoin (BTC)

With BlackRock, Fidelity and other American financial giants, some of the best-known companies have recently entered the crypto market thanks to their Bitcoin ETFs. However, the big bank Goldman Sachs is sticking to its negative position and still wants nothing to do with crypto.

"We don't believe it's an asset class," said Wealth Management CIO Mossavar-Rahmani according to the Wall Street Journal, "we don't believe in crypto."

With this negative view, Goldman is now in the minority among U.S. banks. According to Mossavar-Rahmani, Goldman customers simply did not want anything to do with crypto.

One of their biggest problems with crypto assets is that they can't really be valued. "If you can't assign value, how can you be bullish or bearish?" she asked, referring to the absence of cash flow.

She therefore sees crypto as a purely speculative investment, adding that she sees no benefit in the supposedly unregulated market because: "The rule of law and checks and balances are important."

This is especially surprising because financial sector competitors are working hard to create an Ether ETF because of the tremendous success of the Bitcoin ETF. They are literally pouring into the crypto market and many U.S. banks want a piece of the pie as well.

Crypto enthusiasts should note, however, that Mossavar-Rahmani's views by no means represent all the employees of Goldman Sachs, which has about 40,000 employees worldwide.

So a future entry into crypto is certainly not out of the question. It would not be the first time a major financial giant sensed a business opportunity and changed its mind. After all, BlackRock CEO Larry Fink was once a fierce opponent of Bitcoin.

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