TLDR
- Goldman Sachs CEO David Solomon reaffirms Bitcoin is not a threat to US dollar, calling it a “speculative asset”
- Bitcoin reached new all-time high of $108,786 ahead of Trump’s inauguration
- Goldman Sachs holds $710 million in BlackRock’s Bitcoin ETF, plus investments in other crypto funds
- Trump considering establishing an “America-first” strategic Bitcoin reserve
- Despite regulatory limitations, Goldman Sachs exploring digital-assets platform spinoff
Goldman Sachs CEO David Solomon has maintained his stance that Bitcoin poses no threat to the U.S. dollar’s dominance, even as his firm and other major financial institutions continue to increase their cryptocurrency holdings.
During a CNBC “Squawk Box” interview on Wednesday, Solomon described Bitcoin as “a speculative asset, an interesting speculative asset” while emphasizing his strong belief in the U.S. dollar. The statement comes as Bitcoin prices hover near $108,000, having reached a new all-time high of $108,786 this week.
Goldman Sachs has emerged as a major player in the cryptocurrency space, despite Solomon’s cautious rhetoric. The bank’s latest SEC filing reveals holdings of $710 million in BlackRock’s iShares Bitcoin Trust, making it the second-largest holder of the ETF. The firm has diversified its crypto investments with additional positions of $79.5 million in the Fidelity Bitcoin ETF, $35.1 million in the Grayscale Bitcoin Trust, and $56.1 million in the Invesco Galaxy Bitcoin ETF.
The banking giant’s substantial investment in crypto comes amid regulatory constraints that Solomon highlighted during the interview. “From a regulatory perspective, we still can’t own, can’t principle and can’t be involved with Bitcoin,” he explained, suggesting that the firm’s stance could evolve if regulatory frameworks change.
Other major financial institutions have followed similar paths. Wells Fargo has expanded its cryptocurrency portfolio by investing in various Bitcoin funds, including the Fidelity Wise Origin fund, Invesco Galaxy Bitcoin ETF, iShares, and VanEck Bitcoin Trust funds. Morgan Stanley has also increased its Bitcoin ETF holdings throughout 2024, according to regulatory filings.
The surge in institutional investment coincides with political developments that could reshape the cryptocurrency landscape. Former President Donald Trump, approaching his return to the White House, has expressed interest in establishing an “America-first” strategic reserve that would prioritize U.S.-founded cryptocurrencies, according to recent reports from the New York Post.
BlackRock’s iShares Bitcoin Trust has emerged as the largest such ETF, managing over $60 billion in assets. The fund’s success illustrates the growing mainstream acceptance of cryptocurrency as an investment vehicle, despite ongoing debates about its role in the global financial system.
Solomon’s comments about Bitcoin’s relationship to the dollar address a longstanding debate in the cryptocurrency community. Critics argue that widespread adoption of Bitcoin could undermine the dollar’s global standing, while supporters contend that Bitcoin’s volatility and design make it unsuitable as a direct competitor to traditional currencies.
The Goldman CEO has consistently characterized Bitcoin as a speculative investment, though he acknowledged in a previous interview that it “could be store of value.” He has shown more enthusiasm for the underlying blockchain technology, describing it as “super interesting” and highlighting its potential to reduce friction in financial systems.
Despite regulatory limitations on direct cryptocurrency involvement, Goldman Sachs is exploring new opportunities in the digital asset space. Bloomberg reported in November that the bank is in discussions with potential partners about spinning out its digital-assets platform into a separate company.
The cryptocurrency market has shown strong performance ahead of Trump’s inauguration, with Bitcoin up 3.2% in the past 24 hours and 16.2% over the week. Trump’s recent public mentions of Bitcoin, including comments about its record-breaking performance, have coincided with increased market optimism.
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