Bitcoin astonishes the financial world. David Solomon, CEO of Goldman Sachs, said that the market capitalization of the currency is on its way to surpassing gold.
During the global COVID-19 coronavirus pandemic, financial giant Goldman Sachs joined the optimism regarding the near future of Bitcoin (BTC) and predicted that the cryptocurrency will end the year at record levels.
According to a survey conducted by the firm of nearly 300 clients, 40% currently have exposure to cryptocurrencies, Matt McDermott, global head of digital assets in Goldman Sachs’ Global Markets Division, recounted in a podcast picked up by ‘Bloomberg’. The situation is different now compared to 2017 due to “huge” institutional demand across different industry types and from private banking clients.
In this regard, the company’s CEO, David Solomon, said in a recent interview that the adoption of Bitcoin is going much faster than he had predicted and that it will possibly record a higher market capitalization than gold.
This was stated by the executive in an interview on CNBC’s Squawk Box program, where Solomon referred to Bitcoin as a “digital asset that is more like gold than a payment network, so its value will continue to increase over the years”.
Solomon commented: “I think Bitcoin is on an inevitable path to have the same market capitalization and then a…higher one than gold. It’s how fast adoption is happening. Adoption is happening faster than I had predicted.”
Regarding the increase in cryptocurrency values, the Goldman Sachs executive pointed out that Bitcoin is an asset that has seen a great revaluation in recent times, since the participation of institutional investors and other sectors has been growing, so it is currently a good time to enter this market.
“I’m amazed at how quickly people are getting on board… Once someone decides it’s an asset class, if they don’t trade long term, they’ll trade short,” Solomon told.
Goldman Sachs to Offer Bitcoin Investment Products
The businessman’s statements came a day after Goldman Sachs reported that it will offer investment products around Bitcoin by the second quarter of 2021. Among others, it contemplates a full spectrum that will incorporate options in physical, derivatives, or traditional investment vehicles.
This was indicated by the global head of digital assets for Goldman Sachs’ private wealth management division, Mary Rich, who, for her part, explained in an interview also conducted on CNBC, the following: “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’s something we expect to deliver in the near term.”
Previously, Goldman Sachs filed an application with the U.S. Securities and Exchange Commission (SEC) in March for the creation of an exchange-traded fund, which would be dedicated to developing investments in technology innovation, integrating Bitcoin into this initiative as its focus.