- Goldman Sachs will be offering its wealthiest clients access to a range of investments in Bitcoin.
- This comes after the investment bank reopened its crypto trading desk earlier this year.
- The investment banking giant decided to offer crypto-related investments due to increased demand from clients to hedge against inflation.
Goldman Sachs is preparing to offer its private wealth management clients a range of investments in Bitcoin and other cryptocurrencies.
Goldman Sachs to offer crypto access in Q2
In March, Goldman Sachs filed for a new investment product that would give its clients indirect exposure to Bitcoin. Sometime in the next three months, Goldman Sachs will offer a wide selection of investments, including physical Bitcoin, derivatives or traditional investment vehicles.
Mary Rich, joining Goldman Sachs as the new global head of digital assets for its private wealth management division, will be educating clients about blockchain technology and the crypto ecosystem.
Catering to the wealthiest — with at least $25 million — Rich explained that the move to offer Bitcoin and crypto-related investments was due to client demand. She added:
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.
As many clients are looking for ways to participate in this space, Goldman Sachs announced the reopening of its cryptocurrency desk in early March, supporting Bitcoin futures and non-deliverable forwards.
While governments and central banks continue to flood the economy with stimulus, Bitcoin has been seen by investors and companies as a hedge against inflation.
The bank could begin offering digital asset investments as soon as in the next few months.
Goldman Sachs joins Morgan Stanley — another investment bank that announced that they could offer Bitcoin funds to clients starting in April.
Morgan Stanley indirectly bought into the new asset class when the bank increased its total stake in MicroStrategy to 10.9%. MicroStrategy continues to invest in Bitcoin as a primary treasury asset, giving the investment bank indirect exposure to the cryptocurrency.
With $4 trillion in client assets, Morgan Stanley became the first big bank in the US to offer access to Bitcoin funds to its wealth management clients who have at least $2 million in assets held by the bank.
The Bitcoin price reacted positively to the news, climbing back up to above $58,000 after the pioneer digital currency suffered a flash crash, leading to liquidations of $600 million of leveraged positions in the crypto market.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.