Goldman Sachs Renounces Last Year’s Statement & Declares Admiration for Ethereum
Exactly a year after declaring that crypto tokens were “not an asset class” and labelling them “bad investment”, a major American investment bank Goldman Sachs has made a massive u-turn, and appears to have fallen in love with Ethereum within the same period.
Goldman Sachs Classifies Crypto as an Asset
Goldman Sachs, one of the biggest investment firms in America, has had an interesting history with digital currencies, one particularly devoid of love. Until recently.
Early last year, the investment bank infamously declared that crypto tokens had no intrinsic value and therefore had no grounds to be called an asset class. 2021, however, has begun with an uncharacteristic change of stances and behaviors, as Goldman Sachs followed other Wall Street giants and financial institutions in the gradual adoption of cryptocurrencies. After only just offering bitcoin derivatives to its customers early this month, and creating a special crypto trading team, Goldman Sachs completes its change of stance by revising one of its earlier statements made exactly a year ago.
“Cryptocurrencies Including Bitcoin Are Not an Asset Class” – was its bold headline on May 27, 2020.
It’s May 24, 2021, and Goldman Sachs is here to say otherwise. And more.
According to a tweet by popular economist, Alex Kruger, Goldman Sachs has reached its conclusion about Bitcoin and other crypto tokens as an asset class, after consulting other authoritative bodies as well. The bank’s researchers collaborated with companies like Galaxy Digital, Global FX, and Chainlaysis as well as critics such as Nouriel Roubini to hear their opinions.
Despite Roubini’s objections, Goldman Sachs researchers have made a comprehensive report stating their new stance on crypto as asset classes.
“Crypto, A new asset class,” – the report by Goldman Sachs reads. As bold as its past year’s objection. As important.
Goldman Sachs researchers created a chart showing the ascent and descent of Bitcoin’s prices over the past years, while doing a similar study to crypto tokens like Ethereum. The researchers concluded each coin offered its unique value and even stated it would include cryptocurrencies in its independent wealth management.
Ethereum Could Be Winning More Devotees over Bitcoin
Goldman Sachs is the latest to vouch for the “catch-up” cryptocurrency, despite its nascent interest in the industry. Ethereum has reached an all time high in recent months, increasing by almost 1000% over a year, compared to Bitcoin’s 300.
It only just surpassed Bitcoin in ETP traded volume last week, and won the public love declaration of a UK member of parliament. Separate reports from Goldman Sachs – leaked this time – tout the coin to eclipse Bitcoin in the future. The coin might be at a decline at the moment, but that hasn’t stopped it from winning admirers.