Goldman Sachs Group Inc. GS CEO David Solomon said on Tuesday that the investment banking giant might explore becoming a spot market maker for leading cryptocurrencies if more regulatory clarity is provided.
What happened: At the Reuters NEXT event, Solomon stated that the firm’s ability to participate in spot trading for Bitcoin BTC/USD and Ethereum ETH/USD was “extremely limited” from a regulatory point of view.
“You have to ask regulators because, at the moment, as a regulated banking institution, and I think you know this, we’re not allowed to own a cryptocurrency like Bitcoin as a principal,” the CEO said.
Solomon acknowledged the broader sentiment that the regulatory framework vis-à-vis digital assets might evolve in the incoming Donald Trump administration but added that it’s still “unclear” as to how it’d evolve.
However, he said that if the regulatory framework changes, the firm would “evaluate” making markets in Bitcoin and Ethereum.
“If, from a regulatory perspective, we were allowed to interact in these assets, we have a pretty big infrastructure.”
Why It Matters: Goldman Sachs began investing in spot exchange-traded funds tied to Bitcoin and Ethereum this year, with the latest 13F filing revealing significant positions.
The bank disclosed $710 million invested across multiple Bitcoin ETFs, with a stake of 12.7 million shares valued at $461 million in iShares Bitcoin Trust ETF IBIT.
It also holds $25.16 million in Ethereum ETFs, split between Grayscale Ethereum Mini Trust ETH and Fidelity Ethereum Fund FETH.
The firm was also betting big on its blockchain business, planning to spin out its digital assets platform into an independent company within the next 12 to 18 months.
Price Action: Shares of Goldman Sachs were up 0.19% in after-hours trading after closing down 1.53% during Tuesday’s regular session, according to data from Benzinga Pro.
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