asset managers, barriers to entry, bitcoin fomo, Bitcoin Market, crypto fomo, crypto market, fear of mising out, FOMO, goldman clients, Goldman Sachs, goldman sachs bitcoin, institutional investors

Investment bank Goldman Sachs says institutional investors and asset managers are driven to bitcoin by “fear of missing out†(FOMO). Goldman now considers bitcoin a new asset class. Nonetheless, institutional investors are facing several strong barriers to entry into the crypto market.

Asset Managers, Institutions Facing Crypto FOMO

Goldman Sachs said Monday that the fear of missing out (FOMO) on potential gains from cryptocurrencies among investors has pushed crypto prices higher over the past year. Mathew McDermott, Goldman Sachs’ global head of digital assets, said in a note to clients:

While liquidity has increased in the crypto market recently, the analyst said “it’s still difficult for institutions to gain access to the market, which remains quite fragmented.â€

He continued:

McDermott proceeded to share key issues that Goldman clients have raised regarding what’s preventing them from increasing exposure to bitcoin or other cryptocurrencies.

Firstly, McDermott said that “For corporates, increased involvement often depends on whether their board feels such involvement makes sense given the nature of the company and its objectives.†The Goldman analyst pointed out that “Some investment funds and asset managers don’t have the authority to invest a portion of their portfolios in crypto.â€

The second barrier concerns “How easily can clients gain exposure to the market, is the liquidity sufficient to meet their needs, and are they comfortable enough with the custody and security aspects of managing these assets?â€

In addition, some clients question whether having exposure to cryptocurrencies is the right thing to do and whether it makes sense for their investment strategies, portfolios, or balance sheets, the analyst detailed. Nonetheless, he emphasized:

What do you think about Goldman Sachs’ analysis? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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