Tag - Goldman Sachs

Goldman Sachs launches bitcoin-related financial product

A planned financial product from Goldman Sachs can allow the significant bank to invest indirectly in Bitcoin. The financial institution filed the corresponding application with the US Securities and Exchange Commission (SEC) on March 19.

The financial product is a so-called “linked note.” Such notes are linked to other financial products – in this case, an ETF. Interestingly, the Goldman Sachs note is related to the ARK Innovation ETF, of all things, a fund that is intertwined with the Bitcoin economy.

The Ark Innovation ETF (trading symbol: ARKK) has been around since 2013. The actively managed exchange-traded fund’s stated goal is to invest in technologies and companies with disruptive potential. The ETF is interested, for example, in the energy sector, genetic engineering, artificial intelligence, and precisely also FinTechs and cryptocurrencies. Goldman Sachs’ SEC filing states:

“The ETF may have exposure to cryptocurrencies such as Bitcoin indirectly through an investment in a Grantor Trust. The ETF’s exposure to cryptocurrencies may change over time, and, accordingly, such exposure may not always be represented in the ETF’s portfolio.”

Goldman Sachs values bitcoin in light of growing customer interest

Crypto News

The investment bank’s foray into the crypto sector is gradually becoming a question of “when” rather than “if.” This is according to remarks made by the multinational bank’s president, John Waldron. Waldron confirmed rising client interest toward bitcoin in a virtual event yesterday, claiming the bank is still exploring the crypto asset.

“Customer demand is increasing. We are regulated on what we can do. We continue to evaluate it and engage in it,” he said during the Wolfe Virtual FinTech Forum.

The development is based on the bank’s customer survey on digital assets, which showed that 40% of high-net-worth survey respondents have access to digital assets. 54% of respondents also predicted that the BTC price could fluctuate between $40,000 and $100,000.

In his opinion, the pandemic is responsible for the interest in the flagship cryptocurrency. Many individual traders entered the bitcoin market in 2020 due to the imposed pandemic-related restrictions on movement.