Change of Heart? Goldman Sachs Exploring Bitcoin ETF and Custody Services

Customer demand towards bitcoin continues to expand for the giant banking organization Goldman Sachs Group Inc, said the COO – John Waldron. He also noted that the organization is looking to develop and release a Bitcoin ETF, which is somewhat surprising, having in mind the bank’s hostile approach and views until recently.

Goldman Clients Hungry for Bitcoin

Cited by Reuters, the bank’s President and Chief Operating Officer John Waldron said that the institution is examining various ways to receive exposure to BTC, but it has to be through regulated channels.

He outlined the rapidly growing client demand and added that “we are regulated on what we can do. We continue to evaluate it and engage on it.”

Interestingly, Waldron confirmed recent rumors that Goldman is actively looking to file for a Bitcoin exchange-traded fund (ETF) with the US Securities and Exchange Commission. Numerous US-based entities have already made such applications but to no avail so far.

According to Goldman’s President, though, the bank’s plans don’t stop there. The organization has requested details on how to become a fully-regulated digital asset custodian. He explained that Goldman could currently custody such assets but “can’t principle” them as it’s not regulated to dealing with digital currencies yet.

Waldron attributed the “explosion” of digital asset usage to the COVID-19 pandemic and called it a “significant accelerant.” He added that “there is no question in our mind that there will be more digital commerce, and (use of) digital money.”

John Waldron. Source: CNBC

Have We Witnessed Goldman’s Change of Heart?

Goldman Sachs is among the US banking organizations with the most controversial and changing views on bitcoin. It went from launching a cryptocurrency trading desk in 2017 to halting it and recently restarting it.

Just months before relaunching it, though, Goldman held a conference call in which it said that bitcoin and digital assets are not an asset class.

The bank’s head of investment-strategy, Sharmin Mossavar-Rahmani, senior Chairman Lloyd Blankfein, and the head of commodities research, Jeff Curie, all questioned BTC’s ability to serve as a reliable store of value and blasted its volatility just recently.

Now, though, the comments from Waldron suggest that the bank has completely changed its stance and plans for bitcoin. The primary cryptocurrency is no stranger to altering the minds of people and institutions; just ask JPMorgan, MicroStrategy’s Michael Saylor, or the former Fed governor – Kevin Warsh.