Goldman’s Crypto Chief Has an Optimistic Opinion Towards Cryptocurrencies Future. The global chairman of Digital Assets at Goldman Sachs said the cryptocurrency space, “especially as it relates to hot storage,” was “only one big fraud away from a very negative impact on the market.” According to a questioned and answered sheet that was printed in the firm’s May 21 Global Macro Research newsletter, Mathew McDermott was replying to a question about some risks to the industry.
Underlining he was saying his own opinions and not those of the research team, he said that “inconsistent regulatory actions” worldwide could “prevent the further development of the crypto space.”
The Grows of Crypto Industry
But McDermott, who had been the chairman for 16 years, and who was formerly the firm’s global head of Cross Asset Financing, said he was cheered up that large crypto firms have been continuing their “growth without any considerable increase in dishonest activity,” and is inspired about the industry. “It’s not often that we get to witness the emergence of a new asset class,” he said.
Doubts about cryptocurrencies
Just like most other huge financial services, Goldman Sachs had been originally doubtful about cryptocurrency but controlled these doubts as demand for crypto-related investment products and services that increased between investors.
At the beginning of this month, the investment banking , announced in an interior memo that it had dealt two kinds of bitcoin-linked derivatives and that it was goaling to take part more further in the market by “selectively on boarding” crypto trading service suppliers. It also lately started a platform that supply crypto news and pricing.
McDermott mentioned that the company’s recent initiatives stemmed from increasing request among institutional investors and wealth managers.
“A portion of wealth management clients – high-net-worth individuals and family offices are already very active in the space and in some sense are leading the way for other investors,” McDermott said, and added more to his saying:
“They remain interested in bitcoin, but are also increasingly focused on the broader value that cryptocurrencies can bring. They’re looking at ether in the context of the whole decentralized finance (DeFi) ecosystem and how that can really transform financial markets.”
There was a research in March about monitoring of 280 clients, Goldman Sachs’ Digital Asset team discovered that two in five appliers had some exposure to cryptocurrency, while about three in five hoped to increase their holdings over the next year. This group also became aware that the Chicago Mercantile Exchange’s daily bitcoin futures activity in April got larger about 900% compared to the same period a year ago.
But McDermott has shared with us that the firm is only just starting to give access to the crypto space because of a hesitant“regulatory landscape.” He was looking into suggesting lending structures in and around the crypto space to corporate clients as well as structured notes,” and that it would “offer access to cryptocurrencies, specifically bitcoin, via fund or structured note-like products” for its wealth management clients.