Goldman Sachs believes there are still good investment opportunities among the “good players” in the cryptocurrency industry.
Goldman Sachs, one of the world's largest investment banks, has announced that it is taking a close look at several cryptocurrency companies as has plans to invest tens of millions of dollars in the sector, either by purchasing or financing crypto companies.
Although the collapse of FTX has caused great concern and some distrust towards the cryptocurrency sector, the New York entity believes that It is a good time to invest in the sector.
Goldman Sachs has not yet provided details on which companies it is studying, or the exact amounts of money it plans to invest.
During an interview last month, Matthew McDermont, the firm's head of digital assets, said that they have “found very interesting opportunities, at very reasonable prices.”
It won't be the first time Goldman Sachs invests in crypto companies, as it has done so so far in 11 companies that offer services such as on-chain data analysis or blockchain management.
However, this announcement is interesting as it came after the fall of FTX, which shows that the firm maintains the perception that Blockchain technology is a long-term opportunity.
FTX's impact on the cryptocurrency market
For McDermont, there is no doubt that the fall of FTX has changed the way traditional markets and companies perceive the sector. It has also changed investor sentiment. He adds that while the fall of FTX has been a hard blow, Blockchain technology remains very attractive.
David Solomon, CEO of Goldman Sachs, expressed himself along the same lines after the fall of FTX, pointing out that although cryptocurrencies are a “highly speculative” element, the technology on which they are based has great potential which will also grow as it consolidates and develops.
McDermont explains that The fall of FTX has also brought some opportunities, as institutions that previously traded with the exchange have begun to do so with them. Opportunities have also arisen for attracting talent and for developing new products.
Goldman Sachs' vision contrasts with that of other players such as Morgan Stanley, whose CEO, James Gorman, told Reuters that “Doesn't think crypto will disappear, but is unable to find an intrinsic value.”
Blockchain and crypto: a long-term opportunity
Goldman Sachs' digital assets division, which is staffed by more than 70 people, has a seven-person crypto options and derivatives trading desk.
They have also launched, together with MSCI and Coin Metrics, an on-chain data service, called Datonomy, destined to classify digital assets based on their useAt the same time, they are working on their own Distributed Ledger Technology (DLT) for private use.
Source: Reuters.
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