Goldman Sachs COO: Client demand for Bitcoin is rising

American banking giant Goldman Sachs recently decided to relaunch its cryptocurrency trading desk. This move has reportedly led to an increase in demand for digital assets among Goldman’s client base.

According to Reuters, Goldman Sachs Chief Operating Officer John Waldron said the company is exploring how to meet clients' growing demand for Bitcoin investments. The COO said Goldman Sachs will "continue to evaluate" and "engage" in cryptocurrencies for clients.

Additionally, Matt McDermott, global head of digital assets at Goldman Sachs' global markets division, said on Friday that 40% of Goldman Sachs investors hold at least some cryptocurrency exposure.

Goldman Sachs is also reportedly exploring the launch of a Bitcoin exchange-traded fund (ETF), as well as further ways to custody digital assets. Waldron said the current epidemic has become a "significant catalyst" for online shopping and could lead to an "explosion" in digital currency payments.

Some in the crypto space see Goldman Sachs’ re-entry as a bearish indicator for Bitcoin. The investment management firm originally established its cryptocurrency trading desk at the peak of the 2017 bull run, before Bitcoin’s price plummeted.

America's old-timers have learned that whenever Goldman enters a niche, it's time to protect your money.

— Peter Brandt (@PeterLbrandt) March 1, 2021

However, many have pointed out that the crypto market Goldman Sachs faces in 2021 may be different than it was four years ago.

Large companies have now adopted Bitcoin as a reserve asset. Under the Joe Biden administration, the U.S. regulatory environment may also be more favorable to cryptocurrencies. On Wednesday, the U.S. Senate Banking Committee voted to support pro-cryptocurrency candidate Gary Gensler as chairman of the U.S. Securities and Exchange Commission (SEC). (Cointelegraph)