tl;dr
Goldman Sachs' CIO Skeptical of Cryptocurrencies In a recent interview, Goldman Sachs' chief investment officer, Sharmin Mossavar-Rahmani, expressed skepticism towards cryptocurrencies, including Bitcoin (BTC), emphasizing that the firm does not consider them a legitimate investme...
Goldman Sachs' CIO Skeptical of Cryptocurrencies In a recent interview, Goldman Sachs' chief investment officer, Sharmin Mossavar-Rahmani, expressed skepticism towards cryptocurrencies, including Bitcoin (BTC), emphasizing that the firm does not consider them a legitimate investment asset class due to challenges in valuation and the absence of traditional metrics. Despite this stance, Goldman Sachs is actively engaged in the crypto ecosystem from an infrastructure perspective, highlighting a contrast between public skepticism and active involvement within the firm.
During the interview, Mossavar-Rahmani highlighted the alleged challenge of valuing cryptocurrencies, which she said “lacks” traditional valuation metrics such as earnings, dividends, or cash flow. According to Mossavar-Rahmani, it becomes “difficult” to take bullish or bearish positions on cryptocurrencies without the ability to assign a value. Mossavar-Rahmani views cryptocurrencies primarily as speculative investments and questions the merit of unregulated markets, emphasizing the importance of the rule of law and systems of checks and balances in the financial ecosystem.
While Mossavar-Rahmani notes that Goldman Sachs may not have a definitive long-term view on Bitcoin or digital assets in portfolios, they are actively engaged in the crypto ecosystem from an infrastructure perspective. Goldman Sachs’ global head of digital assets, Mathew McDermott, expects trading volumes in blockchain-based assets to increase significantly in the coming years, coupled with a notoriously bullish stance on the price of BTC.
In January, the US Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs, with asset managers such as BlackRock, Fidelity, Grayscale, VanEck, and others issuing these index funds. Despite Goldman Sachs’ public skepticism of crypto investments, the bank has also shown interest in playing a “crucial role” in the spot Bitcoin ETFs launched by Blackrock and Grayscale (GBTC). Major exchanges such as Nasdaq, CBOE, and NYSE Arca have also filed for SEC approval to trade related ETF options, indicating the growing interest in crypto-related financial instruments. Interestingly, in January, it was reported that Morgan Stanley is exploring adding spot Bitcoin ETFs to its brokerage platform.
Despite Goldman Sachs’ skeptical stance, industry analysts predict that most major platforms and networks will eventually approve Bitcoin ETFs, potentially expanding Bitcoin’s addressable market and opening the floodgates for increased inflows from other prominent financial institutions.
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