Goldman Sachs calls crypto assets a 'new asset class' marking a major shift in tone

As the crypto market develops, it’s safe to assume that prominent investment banks are quietly moving from being reluctant to accept Bitcoin to slowly accepting more. Recently, an executive at Goldman Sachs, a major Wall Street bank, said that crypto assets are a "new asset class" and an "investable asset."

It's interesting that a traditional investment bank would make such a judgment on a financial instrument once described by Wall Street banks as worthless.

In addition, this also represents a significant shift in tone for Goldman Sachs, which asserted last May that crypto assets are not an asset class.

In a new report, Mathew McDermott, Goldman Sachs' global head of digital assets, noted that while Bitcoin has its own risks, because it is still a new technology, the crypto asset "is now considered an investable asset." ".

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“While compared to digital gold, it has not behaved as one would intuitively expect relative to other assets. So far, it has tended to be more in line with risk assets. It is worth noting that customers and those beyond It’s largely seen as a new asset class, and we don’t often see a new asset class emerge.”

Currently, due to Elon Musk's change of attitude towards Bitcoin and the ban on cryptocurrencies by well-known payment institutions in Asia, Bitcoin is currently worth $37,256, a drop of 20.3% in the past week.

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Despite lingering regulatory uncertainty, institutional investors are still allocating to crypto assets.

McDermott pointed out that inconsistent regulatory actions around the world have hindered the further development of the crypto asset industry. Indeed, the lack of legal and regulatory clarity poses a major challenge for most investors, and apart from Asian markets, other major economies such as the US and Russia have yet to clear the regulatory fog.

Still, despite lingering regulatory uncertainty, institutional investors are still allocating to crypto assets.

McDermott acknowledged that institutional clients are still interested in gaining some exposure to crypto assets.

“Overall, discussions with institutional clients revolve around how they can learn more about the topic and how to get into it, not just around bitcoin or other cryptoassets, which were a few years ago The real main topic."

“Beyond that, asset managers and macro funds alike are interested in whether cryptoassets are a good fit for their portfolios and, if so, how to trade physical assets through tools on the blockchain, or through other types of products (usually futures) to gain exposure.”

The Goldman Sachs executive believes that hedge funds are the most active-zce in the crypto asset space, seeking to profit from the "structural liquidity" in the market.

All in all, positive signs are emerging, meanwhile, Bitcoin has surged 12.52% in the past 24 hours. There are more billionaires, such as hedge fund manager Ray Dalio also said last night that they own some bitcoins, which is a big change.

The original text comes from zycrypto, compiled and organized by Blockchain Knight, the English copyright belongs to the original author, please contact the editor for Chinese reprint.

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