Goldman Sachs Says FOMO Is Leading Institutional Investors To Bitcoin

Investment bank Goldman Sachs says institutional investors and asset managers were pushed to Bitcoin "out of fear of kidnapping" (FOMO). Goldman now sees bitcoin as a new asset class. However, institutional investors face many significant hurdles when entering the crypto market. Fear of missing potential cryptocurrency gains among investors (FOMO) has spiked cryptocurrency prices last year, asset managers against Crypto FOMO Goldman Sachs said on Monday. Goldman Sachs' head of global digital assets, Mathew McDermott, said in a note to customers: Given the value and how many Bitcoin and other crypto assets are, there is no doubt that 'fear of hijacking' (FOMO) plays a role. Holiday parties appealing to all tastes jumped into this area. While the liquidity in the crypto market has increased recently, the analyst said "it is still quite difficult for institutions to enter the market, which is highly fragmented." He continued: If you're an asset manager or running a macro fund and all of your biggest competitors are investing in [cryptocurrency] and making significant returns, your investors will naturally wonder why you don't. Do not invest in [asset class]. McDermott continued to share his main concerns about what is preventing Goldman customers from increasing their exposure to Bitcoin or other cryptocurrencies. First, McDermott said: "For companies, more involvement often depends on whether or not boards think such engagement makes sense given the nature and objectives of the business." Goldman analyst pointed out that "some mutual funds and asset managers are not authorized to deposit part of their portfolios in cryptocurrency." The second hurdle concerns: "How easily can customers be exposed to the market, is there enough liquidity to meet their needs, and are they comfortable with the surveillance and security aspects of these assets?" More

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