According to a Goldman Sachs executive, Bitcoin is not a wise investment unless one wants to gamble like they would in Vegas. This week, the SEC approved spot bitcoin ETFs, which will make the coin more accessible to investors. However, Goldman Sachs has previously warned against including cryptocurrency in portfolios.
In a webinar on Thursday, Goldman Sachs Wealth Management’s CIO Sharmin Mossavar-Rahmani stated, “If you want to go to Las Vegas, great. People can use it if they want for total speculation, but it is not an investment, and people should not be investing in cryptocurrencies, in bitcoin, in the ETF, as part of an investment portfolio.”
Mossavar-Rahmani added, “When you think about it, where is there any value to something like bitcoin? We don’t think it is an asset class to invest in.”
The SEC’s approval of bitcoin ETFs has caused a surge in interest and accessibility for everyday investors. As of now, 11 bitcoin exchange-traded funds are available for trading in the US, including those from Fidelity, BlackRock, and Grayscale.
Although Goldman Sachs was considering becoming an “authorized participant” in BlackRock and Grayscale’s bitcoin ETFs earlier this year, the bank has consistently advised clients to avoid adding cryptocurrency to their investment portfolios. In their client materials, the bank cites the lack of cash flow, earnings, and extreme volatility as reasons why cryptocurrency is not considered an asset class.
Bitcoin experienced a strong rally leading up to the SEC’s decision, but its gains have since slowed. The cryptocurrency briefly surpassed $48,000 after the ETF approval, but is now trading around $45,749 as of Friday morning.
