What was unthinkable a decade ago is now turning into reality. Financial institutions like Goldman Sachs, JP Morgan, and BlackRock were against Bitcoin and the cryptocurrency market but are now enjoying the profits that it has to offer.
The U.S. Securities and Exchange Commission (SEC) approved the Bitcoin ETF early this year leading trillion-dollar asset managers to enter the cryptocurrency market and provide BTC ETF services to their clients. Bitcoin rallied to a new ATH of $73.737 in mid-March due to the influx of funds from institutional clients through the ETF.
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Goldman Sachs Tryst With The Cryptocurrency Market
In the latest update, Goldman Sachs confirmed that many of their large clients are looking to explore the cryptocurrency space. The leading investment bank explained that their clients are becoming active and interest in the cryptocurrency market has surged. The development has forced Goldman Sachs to sit down and notice what their clients want and provide them with the services.
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“The recent ETF approval has triggered a resurgence of interest and activities from our clients,” said Max Minton, Goldman Sachs Asia Pacific Head of Digital Assets. “Many of our largest clients are active or exploring getting active in the space,” he added.
Minton stressed that the cryptocurrency vibe was non-existent until a year ago but the tables turned in 2024. “It was a quieter year last year. But we’ve seen a pickup in interest from clients in onboarding, pipeline, and volume since the start of the year”.
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Goldman Sachs is no longer just a hedge investment fund manager but is now involved closely in the cryptocurrency space. Their cryptocurrency derivatives are attracting a larger range of clients worldwide including other asset managers and banking clients. These institutions are using Goldman Sachs’ derivative products to speculate on price movements, gain massive returns, or hedge against losses.