Goldman Sachs Investment Chief: Bitcoin is not an asset, and crypto finance has never been democratized.

Goldman Sachs, the Wall Street giant, Goldman Sachs, GS, Chief Investment Officer, Sharmin Mossavar-Rahmani, stated in an interview that while many cryptocurrency supporters claim it is a new financial system that democratizes finance, the reality is that key decisions are ultimately driven by a few powerful individuals.

Goldman Sachs Investment Chief: Bitcoin is Not an Investment Asset

Sharmin Mossavar-Rahmani has long been skeptical of Bitcoin and digital assets, and even with the recent excitement over a Bitcoin spot ETF this year, it has not changed her long-term perspective.

According to a Wall Street Journal interview, she still does not consider Bitcoin to be an asset class:

Bitcoin is not an investment asset, and I am not a believer in cryptocurrencies myself. If we can't evaluate the value of Bitcoin, how do we look at its price fluctuations? Our clients also show little interest in Bitcoin.

Goldman’s Sharmin Mossavar-Rahmani remains skeptical about bitcoin, even as the cryptocurrency has soared this year https://t.co/rsHBhIxudk https://t.co/rsHBhIxudk

— The Wall Street Journal (@WSJ) April 2, 2024

Crypto Finance Never Democratized, Decisions Made by a Few

Mossavar-Rahmani also criticized the hypocrisy of the crypto industry, pointing out that while many cryptocurrency supporters claim it to be a new system of financial democratization, the reality is that key decisions are ultimately driven by a few powerful individuals.

However, Mossavar-Rahmani's views seem to contradict those of Max Minton, the digital assets head for Goldman Sachs Asia Pacific.

In an interview with Bloomberg at the end of March, Max Minton stated:

The recent approval of a Bitcoin spot ETF has reignited interest among Goldman Sachs clients, with many of the largest clients starting to become more active or explore the crypto space; last year was relatively quiet, but since the beginning of this year, we have seen significant growth in client interest in the crypto space. Most of the demand comes from Goldman's existing clients, primarily traditional hedge funds, but Goldman is also exploring a "broader client base" including asset management firms, digital asset companies, and more.

In early March, Goldman announced the end of its bearish stance on the exchange Coinbase COIN after nearly two years, and since then, COIN has seen over a fivefold increase.

Goldman Ends Bearish Stance on Coinbase, Sees Fivefold Increase After Downgrade