The Bitcoin price rose slightly Wednesday afternoon, above $59,000 as Goldman Sachs (GS) reportedly plans to offer private wealth clients access to Bitcoin and other digital assets.
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The move, reported by CNBC on Wednesday, arrives just two weeks after news emerged that rival Morgan Stanley (MS) would begin opening up similar access to upscale customers, and would open up the latest front for competition between the two banks.
CNBC said that Goldman Sachs planned to offer such investment vehicles in the second quarter.
Mary Rich, the new digital-assets group head of the bank’s private wealth management segment, told CNBC that Goldman was considering offering a “full spectrum” of those investments. That spectrum could include “physical bitcoin, derivatives or traditional investment vehicles,” she said.
In a company memo sent to IBD, Goldman said Rich would “work closely with advisors to educate clients about blockchain technology and the digital assets ecosystem, and seek to deliver content, investment offerings and services.”
“As a firm, we believe in the possibility of blockchain technologies, and it is imperative that we continue to drive innovation and deliver solutions to our clients,” the memo continued.
Bitcoin Price Over $59,000
The price of Bitcoin rose 1% vs. 24 hours earlier to $59,378 The Bitcoin price nearly hit $62,000 on March 13.
The digital asset has a market value of around $1.1 trillion. Grayscale Bitcoin Trust (GBTC), which tries to track Bitcoin’s price, slipped 0.4%.
Earlier this month, Morgan Stanley said it would allow wealthy clients to use three funds that allow ownership of Bitcoin, potentially starting next month.
The moves mark the continuing evolution of big banks’ attitudes toward Bitcoin. Several years ago, JPMorgan Chase (JPM) CEO Jamie Dimon called Bitcoin a “fraud.” But the price of Bitcoin has risen as more banks and other companies take notice, amid a surge in trading activity.
Bank of New York Mellon (BNY) and Standard Chartered have said they will offer safekeeping services for Bitcoin. Companies like Tesla (TSLA) and Microstrategy (MSTR) are investing in Bitcoin directly. JPMorgan has launched its own digital currency.
Observers have attributed the surge in the Bitcoin price over the past year to greater mainstream backing. They also say government stimulus efforts to combat the coronavirus pandemic dumped cash onto the global economy, that more people became interested in alternative currencies as the dollar weakened.
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