- A Chief Investment Officer at Goldman Sachs has offered criticisms against Bitcoin.
- The crypto industry has often come under criticism by traditional financial players.
- Goldman Sachs has consistently taken a stance against the asset class.
Bitcoin (BTC), the largest crypto asset, has often faced criticism from within the United States, given the latter’s cold and unfriendly approach to the asset class. Traditional financial giants like JP Morgan and political figures alike have labeled the crypto king and broader industry as a ‘bubble-like’ investment option, which is not suitable for global acceptance.
Adding to this sentiment, Goldman Sachs, the US-based investment bank known for its skeptical stance on cryptocurrencies, has once again voiced criticism against the asset class.
Goldman Sachs’ No BTC Campaign
In a recent interview with the Wall Street Journal, the Chief Investment Officer of Goldman Sachs’ Wealth Management Unit, Sharmin Mossavar-Rahmani, challenged the eligibility of Bitcoin as an investment class.
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Mossavar-Rahmani highlighted the lack of demand for cryptocurrencies among Goldman Sachs’ client base, emphasizing that the bank does not regard crypto as a viable investment option. “We do not think it is an investment asset class; we’re not believers in crypto,” she stated.
The decentralization aspect of the crypto industry was also a focal point for Mossavar-Rahmani. Criticizing crypto enthusiasts and the industry at large, she asserted, “All proclaim democratization of finance, yet the main decisions end up being driven by a few controlling people.”
Goldman Sachs is not the only traditional financial organization with an open stance against the industry.
TradFi Giants Antagonize Crypto
Despite the growing popularity of the crypto industry, the long-standing lukewarm approach among major banks and asset management firms such as Vanguard and JP Morgan Chase has not shifted.
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While factors, including the recent Bitcoin ETF approval by the Securities and Exchange Commission (SEC) and the growing demand for the asset class, have been expected to alter the firm’s unfriendly stance, many organizations have opposed the asset class.
Last December, JP Morgan CEO Jamie Dimon faced backlash for his constant criticism of the industry, particularly his label of Bitcoin and other assets as tools criminals use to evade the law. Dimon emphasized his stance against the asset class: “If I were the government, I would close it down.”
Tim Buckley, the CEO of asset management firm Vanguard, has also often expressed skepticism against crypto despite the high number of inquiries the firm has received regarding potential Bitcoin ETF offerings since their historical approval.
Find out more about the performance of Bitcoin ETFs since launch here:
BTC ETF Sentiment Shifts as Grayscale’s Outflow Bleeding Slows
Read more about the United States’s recent movement of Bitcoin:
Here’s Why the U.S. Government Made a $2B Bitcoin Transfer
