Goldman closes in on offering Bitcoin to wealth management clients

March 31, 2021, 6:00 PM UTC

Goldman Sachs is preparing to offer clients of its wealth management division investment options for Bitcoin and other cryptocurrencies.

Mary Rich, global head of digital assets for Goldman’s private wealth management division, told CNBC her division is “working closely with teams across the firm to explore ways to offer thoughtful and appropriate access to the ecosystem for private wealth clients, and that is something we expect to offer in the near term.”

Goldman would be the second major investment bank to enable Bitcoin investment. Morgan Stanley did so earlier this year.

In addition, BNY Mellon announced plans last month to form a new team tasked with developing a custody and administration platform for traditional and digital assets. And JPMorgan Chase, which was once one of the more vocal Bitcoin skeptics, recommended investors consider adding the digital currency to their portfolios in February.

Crypto would not be an investment option for all Goldman customers. The private wealth management division services individuals and families with $25 million or more to invest.

Bitcoin’s volatility over the past few months has made some investors wary, in part because the digital currency isn’t backed by anything substantial. When it surges, it does so in tremendous fashion. And year to date, it has jumped from $29,111 to $59,280 as of 12:00 p.m. ET on Wednesday. 

At its peak on March 14, Bitcoin topped $61,000. Ten days later, though, it was down to $52,000. And, during the course of any given day, its price can fluctuate by thousands of dollars. Over the past 24 hours, for instance, it has ranged from $59,738 to $57,549.

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