U.S. banking giant Goldman Sachs recently decided to restart its cryptocurrency trading desk. This has reportedly led to an increased demand for digital assets among its customer base.
According to a Reuters report, Goldman Sachs chief operating officer John Waldron said the firm is exploring how to meet an increasing demand from clients looking to invest in Bitcoin (BTC). The chief operating officer said Goldman Sachs would “continue to evaluate” and “engage on” crypto for customers.
Matt McDermott, global head of digital assets for Goldman Sachs’ global markets division, additionally said on Friday that 40% of Goldman investors have at least some exposure to crypto.
Goldman is also reportedly exploring the launch of a Bitcoin exchange-traded fund, along with further ways to custody digital assets. Waldron said the current pandemic has been “a significant accelerant” for online purchases and would likely cause an “explosion” in digital currency payments.
Some in the crypto space are looking toward Goldman’s reentrance as a bearish indicator for BTC. The investment management firm originally set up its crypto trading desk at the peak of the 2017 bull run, after which time the price of Bitcoin dropped significantly.
— Peter Brandt (@PeterLBrandt) March 1, 2021
Many have pointed out, however, that the crypto market Goldman faces in 2021 is arguably different from what it was four years ago.
Major companies have now adopted Bitcoin as a reserve asset. The regulatory environment in the United States could also potentially be more favorable to crypto under the Joe Biden administration. On Wednesday, the U.S. Senate Banking Committee voted in favor of pro-crypto candidate Gary Gensler to chair the Securities and Exchange Commission.