Goldman Sachs To Become Second Big Bank Offering Bitcoin To Wealthy Clients
Less than two weeks after Morgan Stanley said it will start offering bitcoin exposure to its wealthy clients, banking powerhouse Goldman Sachs is also pushing deeper into the space, telling CNBC this week that it’s looking to offer a “full spectrum” of cryptocurrency investments for its private wealth clients within the next few months.
Goldman Sachs Group Inc. is close to offering investment vehicles for Bitcoin and other digital assets to clients of its private wealth management unit.
″We are working closely with teams across the firm to explore ways to offer thoughtful and appropriate access to the ecosystem for private wealth clients, and that is something we expect to offer in the near-term,” Mary Rich, who was recently named global head of digital assets for the unit, said in an interview with CNBC.
Wall Street banks have largely shied away from cryptocurrencies. While Bitcoin is now more than 11 years old, there are very few things it can actually buy, and volatility is a major risk. Three years ago, Goldman hired a crypto trader to help lead digital-asset markets, with a goal of familiarizing people in the company as well as clients with cryptocurrencies, but the firm has more recently played down the idea of Bitcoin as an asset class.
Bitcoin’s rally over the past few months has intrigued wealthy investors in a new way. During the cryptocurrency’s 2017 surge, they largely remained on the sidelines.
Many compared the cryptocurrency to tulip mania. Warren Buffett called Bitcoin a “mirage” and JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said it was a “fraud”, although he later expressed regret for that remark.