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Goldman Sachs looks for opportunities in crypto after FTX bankruptcy

Cryptocurrency Dec 06, 2022 04:54
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Investing.com - The FTX bankruptcy has added a layer of doubt and risk to the crypto ecosystem when it was already struggling, following numerous crises such as Terra. Such events further erode investor confidence in this new digital asset environment.

This also underscores the need for more regulation within this sector and the need to put in place stronger structures to ensure the sustainability of the system as a whole and to ensure the safety of the capital put into play by investors.

In this sense, Goldman Sachs (NYSE:GS) sees a significant investment opportunity at a time when the sector is in trouble. Indeed, the bank could pour millions of dollars into acquiring companies that are in need right now.

"We do see some really interesting opportunities, priced much more sensibly"

Goldman Sachs could thus take advantage of its reputation and its mastery of best practices to infuse its know-how into the firms it could control. This could help bail out the crypto sector financially and help rebuild investor confidence after the string of bankruptcies.

"It's definitely set the market back in terms of sentiment, there's absolutely no doubt of that. FTX was a poster child in many parts of the ecosystem. But to reiterate, the underlying technology continues to perform."

As a result, the bank has seen renewed interest in its crypto services from institutional investors looking for more stable partners to ensure the safety of their funds.

This is still a relatively timid move, however, given the size of Goldman Sachs' usual billion-dollar investments. At the same time, other major banks remain cautious about crypto for the time being.

Goldman Sachs looks for opportunities in crypto after FTX bankruptcy
 

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