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Goldman Sachs executive remains skeptical of Bitcoin

While many traditional financial institutions are increasingly accepting cryptocurrencies as an asset class, Goldman Sachs remains skeptical of Bitcoin (BTC).

Sharmin Mossavar-Rahmani, the bank’s chief investment officer, recently told the Wall Street Journal that Bitcoin is not considered an investment asset class and that the bank does not believe in cryptocurrencies. Mossavar-Rahmani questions Bitcoin’s value:

If you can’t assign a value, then how can you be bullish or bearish?

Mossavar-Rahmani also said customers have not yet expressed interest in cryptocurrencies. The bank officially launched its cryptocurrency trading platform in 2021 and has been facilitating various Bitcoin-related transactions, including Bitcoin non-deliverable futures and CME BTC futures. Still, banks don’t interact directly with cryptocurrencies.

Max Minton, Goldman Sachs’ Asia-Pacific head of digital assets, noted in an interview that the recent approval of ETFs has reignited interest and activity among the bank’s clients. Many customers are either currently active in the cryptocurrency space or are considering entering the space, with customer interest, onboarding, pipeline and transaction volume increasing significantly since the start of the year.

Despite Mossavar-Rahmani’s public skepticism, Goldman Sachs has been quietly dabbling in the cryptocurrency market. In 2021, the bank reportedly purchased Europe’s first exchange-traded product (ETP), along with ICAP, JPMorgan Chase and UBS, to provide clients with exposure to Polkadot’s DOT cryptocurrency.

The report comes after Bitcoin surged above $71,000 for the first time in history after the UK Financial Conduct Authority approved a cryptocurrency exchange-traded product.

Bitcoin prices have been rising recently since the United States approved a Bitcoin spot exchange-traded fund (ETF) in January, pushing the cryptocurrency past the $70,000 mark for the first time last week. Likewise, Ethereum (ETH) crossed the $4,000 milestone on Monday. Now, the company is looking to do the same with Ethereum.

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