An investment bank Goldman Sachs plans to spend tens of millions of dollars buying or investing in crypto companies after the collapse of the FTX exchange hit valuation and investor interest waned.
Matthew McDermott, Goldman’s head of digital assets commented that the impact of FTX has risen the need for more reliable, regulated cryptocurrency players and this is an opportunity for the big banks to pick up the business,Â
Goldman Sachs is conducting due diligence on several different crypto firms, he added, without elaborating.
McDermott said “We do see some really interesting opportunities, priced much more sensibly,”
FTX filed for Chapter 11 bankruptcy protection in the United States on November 11, following its dramatic collapse, sparking fears of contagion and increasing calls for more crypto regulation.
Moreover, McDermott also said “It’s set the market back in terms of sentiment, there’s absolutely no doubt of that, FTX was a poster child in many parts of the ecosystem. But to reiterate, the underlying technology continues to perform.”
Also read: Goldman Sachs: Coinbase Could Face ‘Further Degradation’
