Goldman Sachs Invites Clients for A Bitcoin Call As Institutional Interest Surges

With the global economic currently in doldrums due to the outbreak of the Coronavirus worldwide, there’s a significant huge in institutional investors’ interest for Bitcoin and other digital currencies.

The institutional participation in the crypto market is growing faster than ever. Seeing this shift, even Wall Street banking giants like JPMorgan and Goldman Sachs are reconsidering their views on Bitcoin and cryptocurrencies.

In a surprising move, Goldman Sachs will be hosting a call for its clients on Wednesday, May 27 dubbed “US Economic Outlook & Implications of Current Policies for Inflation, Gold and Bitcoin”. The Investment Strategy Group at Goldman Sachs has issued a notice inviting clients to the call where they can learn more about Bitcoin.

Sharmin Mossavar-Rahmani, Goldman Sachs’ head of Investment Strategy Group, will host the call accompanied by two other economists. As stated earlier, institutional investors are already showing a growing interest for Bitcoin, in particular.

Recently, ICE’s Digital Assets platform Bakkt also joined hands with insurance broker Marsh to help its institutional clients get up to $500 million worth of insurance for their Bitcoin storage at the Bakkt Warehouse. Bakkt has been offering institutional-grade crypto custodial service to more than 70 clients.

The latest report published by PWC and Elwood Asset Management shows that the total assets under management for the cryptocurrency hedge funds have been growing steadily and gone above $2 billion by the end of last year, 2019.

The Grayscale Investment products has also been giving much exposure of Bitcoin and other digital currencies to institutional players. Grayscale said that in Q1 2020, a majority i.e. 88% of its record-high investments came from institutional players, more specifically hedge funds. Most of this investment went to the Grayscale Bitcoin Trust (GBTC).

Moreover, Grayscale has also accumulated nearly 33% of the total Bitcoins minded during the last three months before Bitcoin halving. The average weekly investment of Grayscale in Q1 2020 had jumped to $29.9 million against $3.2 million during the last year.

Many within the cryptocurrency community say that Goldmans’ Bitcoin call would be a bullish move for the overall community. Another Wall Street banking giant JPMorgan has also accepted two new Bitcoin exchanges - Gemini and Coinbase - as its banking clients.