David Solomon, CEO of Goldman Sachs Group Inc., stated on Tuesday that the investment banking behemoth may consider becoming a spot market maker for prominent cryptocurrencies if additional regulatory clarity is provided.
Solomon disclosed at the Reuters NEXT event that the organization’s regulatory capabilities necessitated “extremely restrictive” participation in Bitcoin spot trading.
The CEO stated, “You must consult with regulators because, as a regulated banking institution, we are currently prohibited from owning a cryptocurrency such as Bitcoin as a principal.”
Solomon acknowledged the broader sentiment that the regulatory regime in relation to digital assets may evolve in the incoming Donald Trump administration. However, he also noted that the specifics of this evolution are still “uncertain.”
Nevertheless, he stated that the firm would “reevaluate” the idea of creating markets in Bitcoin and Ethereum if the regulatory framework were to change.
“If we were permitted to engage with these assets from a regulatory standpoint, we would have a substantial infrastructure.”
Cathie Wood, an analyst at Ark Invest, describes Bitcoin’s recent $100K increase as a significant event and characterizes Apex Crypto as an emerging reserve currency and gold substitute.
This year, Goldman Sachs initiated investments in spot exchange-traded funds that are linked to Bitcoin and Ethereum. The most recent 13F filing indicates that the company has substantial positions in these funds.
The bank disclosed that it had invested $710 million in various Bitcoin ETFs, including a stake of 12.7 million shares valued at $461 million in the iShares Bitcoin Trust ETF IBIT.
Additionally, it maintains $25.16 million in Ethereum ETFs, consisting of Grayscale Ethereum Mini Trust ETH and Fidelity Ethereum Fund FETH.
The organization was also placing significant bets on its blockchain business, with the intention of transforming its digital assets platform into an autonomous entity within the next 12 to 18 months.
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