Global investment bank Goldman Sachs now considers bitcoin to be an investible asset. Goldman Sachs analyst said, “Clients and beyond are largely considering it as a new asset class, which is remarkable – it is not often that we see the emergence of a new asset class.”
Goldman Sachs now considers bitcoin to be an investible asset
Goldman Sachs published a research note on cryptocurrency this week stating that bitcoin has become an investable asset, contrary to its earlier stance. Matthew McDermott, the bank’s global head of digital assets wrote:
Bitcoin is now considered an investable asset. It has its own specific risk, partly because it is still relatively new and is going through an adoption phase.
“And it does not behave as one would expect instinctively relative to other assets, given the digital gold analogy; to date, it has a tendency to be more aligned with risk-on assets,” he continued, In detail:
Customers and beyond are largely considering it as a new asset class, which is remarkable – it is not often that we see the emergence of a new asset class.
In February, when Coinbase Filed With the US Securities and Exchange Commission (SEC) to be listed directly on Nasdaq, Goldman Sachs stated that bitcoin was not yet an investable asset class.
The firm also began coverage of 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 acknowledged in the research note that regulation of the crypto space poses a significant risk to further price appreciation. However, McDermott stated that institutional customers are keen to add crypto exposure to their portfolios.
He adds that now “discussions with institutional clients revolve around how they can learn more on the subject and access space.” In contrast, a few years ago, institutions were asking whether bitcoin or cryptocurrency.
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