[NEWS] Goldman Sachs clients are showing growing interest in crypto assets

It has been revealed that major clients of the major investment bank Goldman Sachs are showing increased interest in cryptocurrency funds. On the 25th, Max Minton, head of Asia Pacific and digital assets at the bank, revealed this in an interview with Bloomberg.

Minton told Bloomberg, "The recent approval of a Bitcoin (BTC) spot ETF has led to increased client interest and activity."

According to Minton, most of Goldman Sachs' clients' interest is focused on Bitcoin spot ETFs, and if an Ethereum (ETH) spot ETF is approved, that could change the situation.

Regarding the Ethereum spot ETF, it was reported on the 20th that the SEC (US Securities and Exchange Commission) has begun an investigation into Ethereum, and some have pointed out that the possibility of it being realized has become remote, as the approval deadline in May is approaching.

Goldman Sachs launched a crypto trading desk in 2021 and currently offers cash-settled bitcoin and ethereum options contracts in addition to CME-listed bitcoin and ethereum futures.

"Last year was quiet, but since the beginning of the year, we've seen increased client interest in onboarding, pipeline and volume," Minton said.

Most of the demand is coming from Goldman Sachs' existing clients, traditional hedge funds and other institutional investors. The bank also said it is expanding to a "broader client base" including asset managers, bank clients and some digital asset companies. Clients are using crypto derivatives to enhance yields and for hedging purposes.

Goldman Sachs is also working on the tokenization of real-world assets (RWAs) using blockchain. It launched a digital asset platform called "GS DAP" and has recently participated in a pilot test of a blockchain network connecting banks, asset managers and exchanges.

Change in interest in crypto assets through ETFs

"Institutional investors are showing interest in the crypto market," said Matthew McDermott, head of digital assets at Goldman Sachs, at a crypto-related conference in London. He added, "Prices are still driven primarily by retail investors. But we're starting to see institutional investors, such as financial institutions, get involved. Now we're seeing a shift in investment appetite."

On the other hand, Robert Mitchnick, head of digital assets at BlackRock, the world's largest asset management company, said at another conference, "compared to Bitcoin, interest in Ethereum is low." He said that Bitcoin is the focus of attention, and that investors are skeptical of other stocks.

Reference: Bloomberg
Image: Shutterstock

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