Goldman Sachs asked clients their views on bitcoin’s likely price trajectory, yet another sign of growing interest in cryptocurrency from mainstream finance.
Goldman Sachs’ market “strat” team within the securities division sends a monthly poll to clients to gauge their thinking on a variety of investment issues.
The December “Quickpoll” includes the question: “Where do you see bitcoin at the end of the year?” — thought to be the first time the investment bank has used the poll to ask clients about the cryptocurrency.
BI understands that around 1,200 Goldman clients answered the question. Opinion on the price trajectory was divided, but the biggest minority — 30% — answered “Higher [12,000 – 15,000].” 15% said they believed bitcoin would be lower or much lower by the end of the year, while 28% had no view.
Bitcoin’s price has surged over 1,000% so far this year to around $11,800 as of Tuesday afternoon. However, the cryptocurrency has been prone to wild swings in price.
The rise in price has coincided with rising interest from institutional investors and the companies that serve them. Exchange operators CBOE and CME Group are both set to launch bitcoin futures contracts later this month and Nasdaq is rumoured to be planning a similar product.
Goldman Sachs itself is reportedly considering launching a cryptocurrency trading desk that would offer liquidity to clients who want to trade bitcoin. The “strats” team called bitcoin the “Topic du jour” in its email to clients.
However, CEO Lloyd Blankfein said during a recent TV interview that it was too early for the investment bank to develop a bitcoin strategy.
“Something that moves up and down 20 percent in a day doesn’t feel like a currency, doesn’t feel like a store of value,” Blankfein said.
Frontpage September 19, 2019