Goldman Sachs Group Inc. is near offering investment Vehicles for Bitcoin and other digital assets for clients of its private wealth management unit. It is the most recent top-tier organization to move into the cryptocurrency space. Mary Rich, who will turn into the new global head of the digital asset for Goldman Sachs’s private wealth management division, said in an interview with CNBC Wednesday that Goldman Sachs offering Bitcoin and other Cryptocurrencies to investors in the next three months. Recently Morgan Stanley also revealed that it will begin offering its wealth management client access to bitcoin funds. It became the first major bank to do so.
The crypto contribute could be through the “physical bitcoin, derivatives or traditional investment vehicles,” said Rich. “There’s a contingent of clients who are looking to this assets as a hedge against inflation, and the macro backdrop over the past year has certainly played into that,” Rich also added, “There is also a large contingent of clients who feel like we’re sitting at the dawn of a new Internet in some ways and are looking for ways to take participate in this space.”
Goldman’s decision shows major financial institutions are starting to accept cryptocurrencies after years of skepticism due to their volatile nature. Firms including Tesla Inc, BNY Mellon Corp, and Square Inc have recently announced they are betting on bitcoin, as the wider adoption of the cryptocurrency for settling transactions and investments gathers pace. Then, Uber (UBER) and Mastercard (MA) likewise said they intend to begin accepting bitcoin. As more financial institutions invest in bitcoin, more companies are expected to join.
The digital currency, however, remains highly volatile.