Goldman Sachs’s digital asset market head: Current bear run in the crypto market is healthy


Justin Schmidt, the head of digital asset markets at Goldman Sachs, acknowledged the concerns related to security raised by various clients in relation to crypto assets during a conference in New York. As the crypto market is facing a tough time tackling the bear, investors are trying to seek refuge in the form of getting security for their digital asset.

Goldman Sachs, the investment banking giant, had earlier made it clear that they won’t be joining the volatile crypto market, according to Bloomberg.

The investment banking firm will keep away from the market until some level of clarity is provided on the regulations. Schmidt offered a response to all his clients for the pressing question and reasoned with them about the current hurdles. He said:

“One of the things they ask me is ‘can you hold our coins?’ and I say ‘no, we cannot,” One of the things we have to take into consideration when we’re building out our business is what we can and cannot do from a regulatory perspective.”

Schmidt mentioned that the clients’ panic of securing their asset, especially at the rate at which the price of the cryptocurrency in falling, is justifiable.

VanEck, an investment management firm, is still in the race for creating a Bitcoin Exchange Traded Fund [ETF] and the change in the crypto market might increase the pressure on Goldman Sachs to expand the horizons when it comes to client servicing.

Schmidt acknowledged the decision of Fidelity, an investment management firm, to join the cryptocurrency market, but also realized that institutional investors fall on the conservative side, thus increasing the concerns related to custodial security. The head of digital asset markets said:

“Custody is this foundational piece that is absolutely necessary. Custody is part of an overall integrated system where different parts need to work well with each other and safely with each other and you have to be able to trust all the different parts in that chain, from buying something to transferring it to storing it in for the long-term.”

In conclusion, Schmidt motivated crypto investors who are facing the burn of the falling market by saying that a swift shift will help in putting an end to some less desirable and rampant speculation prevailing in the industry today. He said:

“In many ways, the rampant speculation that has been quelled over the past several months is really healthy for the ecosystem and I very much look forward to companies that are actually providing institutional-grade products and services.”

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