Posted 1 week ago | by Catoshi Nakamoto
Goldman Sachs has announced that nearly half of its family offices are interested in digital assets, similarly, JPMorgan has also proclaimed that a lot of its clients are also bullish on digital assets. Meanwhile, BNY Mellon, the U.S.’s oldest bank is diving headfirst into the market as a custody for a new exchange Pure Digital, as one of the U.S.’s oldest banking families the Rothschilds buy more shares in GBTC and ETHE.
Goldman stated that in a recent survey a whopping 45% are interested in digital assets, while 15% of those polled revealed they are already invested in the digital asset market. Out of those participating in the survey, 22% stated they had assets under management of $5 Billion or more, while 45% said they oversee $1 Billion – 4.9 Billion.
The survey, polled more than 150 family offices that believe crypto is a good hedge against “higher inflation, prolonged low rates, and other macroeconomic developments following a year of unprecedented global monetary and fiscal stimulus.”
Melina Flynn, who serves as Global Co-Head of private wealth at Goldman Sachs, told Bloomberg that majority of family office clients have asked about blockchain and digital assets. Family offices want to talk to us “about blockchain and digital ledger technology,” said Flynn. There are many who think that “this technology is going to be as impactful as the internet has been from an efficiency and productivity perspective.”
Goldman Sachs expanded its trading desk in June right after the latest crypto crash announcing that it was planning to offer Ether (ETH) derivatives products in the coming months as Bloomberg reported. CNBC additionally published an article stating that Goldman Sachs has begun trading Bitcoin futures with Mike Novogratz’s Galaxy Digital.
In a previous interview with Bloomberg News, McDermott said institutional demand for cryptocurrencies will continue to grow despite the market volatility:
“Institutional adoption will continue. […] Despite the material price correction, we continue to see a significant amount of interest in this space.”
Goldman Sachs launched limited Bitcoin (BTC) derivatives on its trading desk in May. After announcing that it would restart its crypto trading desk in March which it had previously shut down.
Simultaneously, JPMorgan has said a lot of its asset and wealth management clients think cryptocurrency is an asset class and they want to invest in it. The comments by Mary Callahan Erdoes, J.P. Morgan Asset & Wealth Management’s CEO came during a recent interview with Bloomberg as well, expressing:
“Digital currencies are new, and in general digital currencies are being debated as to whether they are an asset class or not,” Erdoes said. She added:
“A lot of our clients say that’s an asset class and I want to invest. Our job is to help them to put their money where they want to invest.”
“It’s a very personal thing,” Erdoes continued. “We don’t have bitcoin as an asset class per se, and time will tell whether it has a store of value. But the volatility that you see in it today, it just has to play itself out over time.”
This also comes on the heels of BNY Mellon declaring that it will be the custodian used for Pure Digital a new London-based digital asset exchange that has seen a consortium of six large banks want to get involved in its platform. According to a report in Financial Times, BNY Mellon and State Street, alongside other unnamed banks will create a digital asset exchange in a bid to compete with larger players.
BNY Mellon isn’t the only bank to get involved with a digital asset exchange. Earlier this year, Fidelity partnered with global broker TP ICAP to launch a digital asset trading platform along with British banking giant Standard Chartered.
Fidelity also had its own survey it conducted in late June finding that 71% of institutional investors polled were interested in digital assets. According to the survey, that’s a ratio of 7 in 10 institutional investors that expect to buy or invest in digital assets in the future, and if that’s not enough, more than 90% of those interested in digital assets expect to have an allocation in their institution’s or clients’ portfolios within the next five years. As Bitboy Crypto previously reported, Fidelity recently launched its own digital assets research group headed by Tom Jessop, as the bank expands its staff by 70% to meet the demand like Sachs, JPMorgan, and others.
Bitboy Crypto reported yet another poll by Nickel Digital Asset Management which revealed that 82% of private institutional investors and asset managers are planning to increase their exposure to digital assets in the next three years. In addition, 40% said they will drastically increase their digital asset holdings, 7% stated they would reduce their exposure, and a mere 1% said they would sell their entire portfolio of digital assets.
Even Rothschild bought the recent Bitcoin dip, as well as the Ethereum dip from all-time highs. The famous banking family used the Rothschild Investment Corporation to buy 2,834.69 ETH in a stock format through Grayscale’s Ethereum Trust (ETHE) and has quadrupled its exposure to Bitcoin through the GBTC Bitcoin Trust Fund since April.
According to a filing with the U.S. Securities and Exchange Commission (SEC) from July 19th the Rothschild’s holdings of Grayscale Bitcoin Trust (GBTC) grew to 141,405 shares in Q2 2021, up from 38,346 in Q1. The Chicago-based investment firm has now invested $6.3 million in ETHE holding 279,119 ETHE after disclosing its initial stake in the trust in mid-April and a total of $4.2 million in GBTC.
The Rothschilds are reported to be holding $1.4 billion in assets with about $5 million of it now held in Ethereum according to TrustNodes.
We have been telling you that the big guys are trying to shake you out of the market to get you to sell your Bitcoin, Ethereum, Cardano, and XRP. Watch what the institutions are doing, look at the surveys they release to clients, and ignore the talking head fudders like Mr. Scott Minerd who flip flops more than a pancake. The birth of a new asset class is taking place and you won’t want to miss the boat. HODL!
Bitcoin is currently trading at [FIAT:$32,189.75] UP +8.0% in the last 24 hours according to Coingecko at the time of this report.