The exchange traded funds (Bitcoin (BTC) Spot ETF are one of the major market players. Its approval in January led the queen cryptocurrency to reach new all-time highs, largely due to the exponential increase in institutional interest.
Although the support of important players in the traditional finance sector such as BlackRock either Fidelity has served to make many of their counterparts interested in these assets, this is not the case with Goldman Sachs.
“We don’t believe it is an investment asset class. We don’t believe in cryptocurrencies”he stressed in an interview Sharmin Mossavar-Rahmaniinvestment director of the bank’s Wealth Management unit, in an interview with ‘Wall Street Journal’ in which she compared the recent increases with the “tulip crisis” 17th century.
Mossavar-Rahmani, Known to be skeptical of bitcoin and other digital assets, she bases this opinion on the fact that it is almost impossible to accurately value cryptocurrencies, which produce no profits, cash flow or dividends. “If you can’t assign a value, how can you be bullish or bearish?”he asks rhetorically.
“It creates absolutely no value in any way,” says the Goldman Sachs expert, who has also criticized the bulls for their hypocrisy. “They proclaim the democratization of finance, but the main decisions end up being made by a few controllers,” she adds.
Why Goldman Sachs prefers other instruments
Still, Mossavar-Rahmani has recognized the Possible advantages of converting assets such as real estate in digital tokens and claims that central bank digital currencies (CBDCs) could be useful over time.
Similarly, the investment director of Goldman Sachs WM acknowledges that gold also does not produce profits and that it is difficult to value, although historically it has been popular as an investment. “At least I know can keep physical gold and store it; You can’t with cryptocurrencies. And anyway, we don’t encourage people to own gold,” he concludes.
Previously, Goldman Sachs had indicated that the approval of the ETFs could be positive for institutional investors. “Investors do not own physical BTC, and rely on the ability of the ETF manager to effectively carry out the management strategy, which includes a number of risks,” they explained.
Recently, bitcoin has fallen with gusto and some analysts point out that the slowdown in ETFs could be behind this cooling. However, the Coinbase analysts They believe that cryptocurrencies are in a good position to enjoy another good quarter.
Source: Ambito
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