By George Ward
Goldman Sachs Group Inc., an American-based Multinational Firm, has reportedly been at the forefront of investing millions of dollars into crypto industries currently affected by the implosion of FTX.
Per multiple reports, Mathew McDermott, head of Goldman’s digital asset team, stated that the trending FTX collapse and its corresponding effects on startups had created many irresistible, mouth-watering offers to banks.
Meanwhile, McDermott highlighted the opportunities available to venture capitalists with a focus on crypto-related companies. However, he made no pronouncements about the amounts Goldman has set aside for investments.
Meanwhile, the downturn of the FTX platform, along with its affiliate firm, was foretold by various research based on its financial reports and unethical policies. However, its implosion has created opportunities for investors as the FTX contagion spreads.
Therefore, corporate investors seek clarity on crypto regulations similar to what is applicable in the traditional financial industry. Thus, they can continue their trading activities without disruption.
Nevertheless, many investors, such as Goldman Sachs, are willing to invest once they find the right opportunities. As a result, McDermott and his team believe there is still light at the end of the tunnel.
Some Doubters Still Exist
Like Goldman Sachs, other banks such as The Holdings Plc and Morgan Stanley have doubts regarding the long-term growth and profitability of the crypto sector. For instance, the CEO of HSBC, Noel Quinn, said that the bank has no intention of offering any form of crypto trading, despite its customers’ enormous demands for crypto investment products.
However, a London-based financial service firm, the Britannia Financial Group (BFG), has a different view. The BFG team is mapping out a long-term plan to establish relevant crypto investment products in line with current crypto regulatory policies.
Many industry players see the interest of asset management firms in developing and launching crypto investment products as a positive development for the crypto space. They also believe it will attract more institutional investors into the sector.
Also, it would encourage businesses to use crypto’s underlying technology (blockchain technology).