While speaking in an interview with CNBC, Jeffrey R. Currie, Goldman Sachs’ global head of commodities research, said that Bitcoin’s incredible bull run has attracted greater institutional interest.
However, he was also quick to note that smart-money investors are still make up a small section of the general market. They will have to come in large numbers for Bitcoin to become a stable asset and avoid the usual flash crashes like the one that happened earlier this week. He commented:
“I think the market is beginning to become more mature,” Currie said of Bitcoin, adding that “volatility and those risks that are associated with it are common for nascent assets. The key to creating some type of stability in the market is to see an increase in the participation of institutional investors, and right now they’re small […] roughly 1% of it is institutional money.”
Several of Wall Street’s biggest names have already thrown their massive weight behind BTC in the last 12 months. Legendary investors like Stanley Druckenmiller and Paul Tudor Jones have so far invested in the digital asset. Moreover, firms like Ruffer Investment Company and MassMutual have already purchased large positions in bitcoin.
In December 2020, SkyBridge Capital, Anthony Scaramucci’s hedge fund, submitted their application with the Securities and Exchange Commission (SEC) seeking to launch a new bitcoin fund.
That adds to the tens of billions invested by PayPal, MicroStrategy, Square, and Grayscale combined. Notably, Goldman Sachs has also changed its opinion on bitcoin and cryptos in general. The firm revamped its human resources to feature digital currency experts and issued comprehensive guidance on the peaceful coexistence of gold and bitcoin as macro hedges.
One of the biggest crypto exchanges in the world, Coinbase, has also tapped Goldman Sachs for its forthcoming initial public offering (IPO).
After more than ten years of extreme price volatility, bitcoin is now beginning to mature as an asset class, according to Currie. But, more institutional money is necessary to stabilize the market.
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