In a recent interview, Sharmin Mossavar-Rahmani, the chief investment officer of Goldman Sachs Wealth Management, expressed her reservations about digital currencies, including Bitcoin (BTC). Despite the increase in Bitcoin trading volume and institutional adoption through approved spot Bitcoin exchange-traded funds (ETFs), Mossavar-Rahmani stated that Goldman Sachs does not regard cryptocurrencies as a legitimate investment asset class.

Goldman Sachs CIO Questions Crypto Investments

During the interview, Mossavar-Rahmani pointed out the difficulty in assessing the value of cryptocurrencies, which, according to her, lacks traditional valuation metrics such as earnings, dividends, or cash flow. This challenge, she believes, makes it difficult to take a clear stance on cryptocurrencies, leading many of Goldman Sachs' clients to avoid seeking investment advice in the crypto space.

Mossavar-Rahmani primarily views cryptocurrencies as speculative investments and questions the credibility of unregulated markets. She emphasizes the importance of legal frameworks and regulatory oversight in the financial ecosystem.

Contrasting Views

However, Mossavar-Rahmani's stance contrasts with those of other traditional finance sector players, which are gradually incorporating cryptocurrencies into their offerings. While Mossavar-Rahmani notes that Goldman Sachs may not have a definitive long-term view on Bitcoin or digital assets in portfolios, the bank is actively engaged in the crypto ecosystem from an infrastructure perspective.

Goldman Sachs' global head of digital assets, Mathew McDermott, has expressed a bullish stance on the price of BTC and expects trading volumes in blockchain-based assets to increase significantly in the coming years. Institutional interest in cryptocurrencies is growing, with institutions increasingly participating in the market.

Bitcoin ETF Surge

In January, the US Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs, with asset managers such as BlackRock, Fidelity, Grayscale, VanEck, and others issuing these index funds. Despite Mossavar-Rahmani's public skepticism of crypto investments, Goldman Sachs has shown interest in playing a "crucial role" in the spot Bitcoin ETFs launched by Blackrock and Grayscale (GBTC). This role involves creating and redeeming ETF shares to ensure their alignment with underlying assets.

The approval of these ETFs by various platforms is expected to significantly expand Bitcoin's addressable market, potentially opening the floodgates for increased inflows from other prominent financial institutions. As of this writing, the price of BTC stands at $65,600, maintaining a trading range between the $64,400 level and the $66,500 mark over the past few days.