Goldman Sachs’ CEO, David Solomon, has signaled a potential shift in the bank’s approach to the Bitcoin and Ethereum markets. In an interview at a Reuters event, he stated that the institution would consider a more extensive involvement if authorized by U.S. regulators.
Traditionally, Goldman Sachs, like many other legacy financial giants, has steered clear of cryptocurrencies and blockchain assets due to concerns about volatility and prevalent scams. However, the sentiment has been evolving in 2024, especially after the SEC’s approval of crypto exchange-traded funds. With the re-election of President Donald Trump, observers expect greater institutional adoption of digital assets.
Currently, Goldman Sachs is already engaged in blockchain-related activities. It plans to launch a digital assets business to accelerate crypto adoption and has initiated asset tokenization projects. By mid-November 2024, the bank had purchased $710 million worth of spot BTC ETF shares. Although this is a substantial investment, it is a relatively small fraction of the total spot BTC market and the bank’s $3 trillion in assets under management.
The regulatory requirements alluded to by Solomon remain uncertain. While Bitcoin and Ethereum are recognized as commodities, it seems that traditional finance titans may be waiting for more explicit federal legislation, such as a law for a national Bitcoin reserve, before making a major commitment to these digital assets.
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