Global investment bank Goldman Sachs now considers bitcoin an investable asset. â€œClients and beyond are largely treating it as a new asset class, which is notable â€” itâ€™s not often that we get to witness the emergence of a new asset class,â€ said Goldman Sachsâ€™ analyst.
Goldman Sachs Now Considers Bitcoin an Investable Asset
Goldman Sachs published a research note on cryptocurrency this week stating that bitcoin has become an investable asset, a reverse of its earlier stance. Mathew McDermott, the bankâ€™s global head of digital assets, wrote:
â€œAnd it doesnâ€™t behave as one would intuitively expect relative to other assets given the analogy to digital gold; to date, itâ€™s tended to be more aligned with risk-on assets,â€ he continued, elaborating:
In February, when Coinbase filed with the U.S. Securities and Exchange Commission (SEC) for a direct listing on Nasdaq, Goldman Sachs said that bitcoin was not yet an investable asset class.
The firm also initiated its coverage of the Coinbase stock (NASDAQ: COIN) on Monday with a buy rating and a price target of $306. Coinbase is currently trading at $227.88.
The Goldman Sachs analyst also acknowledges in the research note that regulation of the crypto space poses a significant risk to further price appreciation. Nonetheless, McDermott said institutional clients remain keen on adding crypto exposure to their portfolios.
He further noted that now â€œdiscussions with institutional clients revolve around how they can learn more on the topic and get access to the space.â€ In contrast, a few years ago, institutions were asking about what bitcoin or cryptocurrencies were.
Goldman Sachs has been bullish about bitcoin lately. The bank formally established a cryptocurrency trading team earlier this month and said that institutional demand for crypto â€œcontinues to grow significantly.â€
What do you think about Goldman Sachsâ€™ view of bitcoin now? Let us know in the comments section below.
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