Goldman Sachs is quite close to offering its first investment vehicles for bitcoin and other digital assets for the clients of its private wealth management group. The bank is aiming to begin offering its investments amidst the emerging asset class in its second quarter, according to Mary Rich. Mary Rich was recently named as the global head for digital assets in the private wealth management division of Goldman.
Rich this week said, “We are working closely with teams across the firm to explore ways to offer thoughtful and appropriate access to the ecosystem for private wealth clients, and that is something we expect to offer in the near-term.”
Goldman is looking for an ultimate offering of a full spectrum of investments in bitcoin and digital assets.
This move means that soon the clients from two of the world’s most reckoned investment banks, Goldman and Morgan Stanley, are going to have access to a nascent asset class. This has intrigued several billionaires and digital currency believers in many ways.
Early this month, Morgan Stanley told its financial advisors that they can place clients into bitcoin funds from the starting of April.
It is the most recent sign of the residing power of blockchain-related assets, which are including bitcoin. It is emerging as a new kind of money that came into the light during the 2008 financial crisis. Until now, big US banks also managed to shun bitcoins, deeming users too speculative and volatile for the clients.
After the latest boom in the price of bitcoin, it has drawn many institutional investors, fintech players, and corporations. In the end, it was the client demand, which played the actual game.
“There’s a contingent of clients who are looking to this asset as a hedge against inflation, and the macro backdrop over the past year has certainly played into that,” Rich said. She further added, “There is also a large contingent of clients who feel like we’re sitting at the dawn of a new Internet in some ways and are looking for ways to participate in this space.”
The private wealth management of Goldman is targeting mostly individuals, families, and endowments, along with $25 million of investment. The bank may offer bitcoin investment funds that are similar to those which Morgan Stanley is going to have.
Rich said that they are still on the very nascent stage in this ecosystem. No one exactly knows how it is going to evolve or what shape it is going to take.