Updated 31 May, 2021

Goldman Sachs Now Considers Bitcoin “an Investable Asset”

investable asset


Key Takeaways:

  • Goldman Sachs confirms in its newest report on cryptos that bitcoin is “an investable asset”
  • The research paper describes the growing crypto market as “a new asset class”

Goldman Sachs’ Report Deems Bitcoin an ‘Investable Asset’

A new research paper by the investment banking giant Goldman Sachs, showed the bank has reconsidered digital currencies and their position as investable assets. Cryptocurrencies, according to the report, are now considered by the banking firm “a new asset class”. And Bitcoin is considered “an investable asset”.

“It has its own idiosyncratic risk,” the report says about Bitcoin.  “Partly because it’s still relatively new and going through an adoption phase. But clients and beyond are largely treating it as a new asset class, which is notable. It’s not often that we get to witness the emergence of a new asset class.”

The research paper expresses concerns over the “inconsistent regulatory actions around the globe that impede the further development of the crypto space or the ability of more regulated entities to engage within it”. The paper also flashes hope as the overall sentiment has “turned more constructive”.

Crypto Heavyweights  Found In This Report

The paper goes contrary to some research and studies that have explored the growing correlation of Bitcoin to traditional assets. The research paper by the Global Macro division at Goldman states that Bitcoin “doesn’t behave as one would intuitively expect relative to other assets given the analogy to digital gold. To date, it’s tended to be more aligned with risk-on assets.

The report includes the views of cryptocurrency professionals, such as Michael Novogratz, founder and CEO of crypto investment firm Galaxy Digital Holdings. Also present is the perspective of Michael Sonnenshein, CEO of Grayscale. It is a crypto asset management firm that runs the largest Bitcoin trust in the world with over $20bn in Bitcoin. Both crypto enthusiasts, unsurprisingly, agree that crypto is an asset class on its own. Goldman Sachs’ report cites Mr. Novogratz. He says that the growing institutional engagement “is a loud and clear signal that crypto is now an official asset class.”

Michael Sonnenshein comments in the report that he sees bright future for the fledgling cryptocurrency industry. “I have yet to find somebody who has really done their homework on crypto assets that isn’t truly amazed by the potential for the asset class.”

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