According to Reuters, Goldman Sachs, one of the world’s major investment banks, is looking to spend tens of millions of dollars on crypto companies whose values have been impacted by the fall of FTX.
While the amount Goldman Sachs may potentially invest is small for the Wall Street behemoth, which earned $21.6 billion last year, its willingness to continue investing in the midst of the sector shakeout indicates that it sees a long-term opportunity.
Mathew McDermott, Goldman’s head of digital assets, said in an interview with Reuters last month:
“We do see some really interesting opportunities, priced much more sensibly.”
Goldman Sachs CEO, David Solomon, told CNBC on November 10, as the FTX drama unfolded, that while he considers cryptocurrencies to be “highly speculative,” he sees significant potential in the underlying technology as its infrastructure becomes more formalized.
The FTX failure is the latest setback for an industry that has seen several famous bankruptcies in recent months due to weak markets. Its meltdown has spread to other companies, including crypto lender BlockFi, which declared bankruptcy in the same month.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu