Goldman Sachs To Increase Investment In Crypto
- Goldman Sachs head of digital assets, Matthew McDermott, revealed his firm’s plans of investing tens of millions in crypto space.
- McDermott confirmed that the investment bank will be investing in digital asset businesses and also making acquisitions amid bear market.
- The executive believes that the fall of FTX and other crypto investors have turned investors’ sentiment bearish.
- Goldman Sachs is bullish on blockchain and McDermott stated that the technology will be a part of financial industry in the future.
Goldman Sachs, the second largest investment bank in the world by revenue, will be increasing its investment in crypto businesses despite the current bearishness prevailing in the space following the collapse of the multi-billion dollar crypto exchange FTX under the leadership of Sam Bankman-Fried (SBF).
“It’s definitely 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,” said Matthew McDermott, the head of digital assets at Goldman Sachs.
McDermott confirmed that the company is ready to invest tens of millions of dollars in the crypto space. In a recent interview for Reuters, the executive stated that his firm will be heavily investing in crypto industry to make acquisitions along with investments in the crypto projects.
Interestingly, McDermott added in his statement that the involvement of trustworth and regulated financial players in the crypto industry will improve the current sluggish and bearish condition of the once multi-trillion dollar industry. The reputation of the cryptosphere has been tarnish by malpractices of crypto entrepreneurs like Bankman-Fried and the founders of bankrupt crypto hedge fund Three Arrows Capital (3AC).
The Goldman Sachs executive pointed out that his firm sees “some really interesting opportunities, priced much more sensibly,” following the sky-high valuations that crypto firms had achieved in the 2021 maket bull run. At that time, Bankman-Fried’s bankrupt exchange was valued at $32 billion and is now worth nothing.
Moreover, Goldman is not the only firm that believes the current crypto winter to be a good time to invest in crypto space. Recently, billionaire investor Mike Novogratz stated that his firm Galaxy Digital is looking to make acquisitions in the crypto space due to lower valuations as compared to the valuations in the bull run.
Meanwhile McDermott believes that the collapse of multiple crypto lenders and unclear regulations are also a reason why the crypto market sentiment has turned bearish and investors are no longer interested in the digital assets including non-fungible tokens (NFTs). However, the executive stated that blockchain technology will be an integral part of the financial world in the near future.
The Goldman Sach’s head of digital assets also sees many crypto players leaving the space due to the bearish conditions and lower demands and joining the world of traditional finance.
“I suspect a number of them traded with FTX, but I can’t say that with cast iron certainty,” he said.
Recently, the CEO of Goldman, David Solomon, shared his optimistic thoughts on blockchain technology and stated that digital currencies are not “going away,” but he wouldn’t put an “intrinsic value on it.”
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
