After more than a decade of extreme price volatility, bitcoin (BTC) is finally beginning to mature as an asset class, according to Jeffrey R. Curry, global leader in commodity research at Goldman Sachs.
Curry said in an interview with CNBC that Bitcoin’s impressive growth has attracted more institutional interest, but noted that smart money investors still represent a small portion of the overall market. He said it would take a lot for Bitcoin to become a stable asset and avoid the sudden crash we saw earlier this week.
“I think the market is getting more mature,” Curie said of Bitcoin, adding that “volatility and associated risk” are common with new assets.
“The key to creating some kind of stability in the market is to increase the participation of institutional investors, who are currently small […]. About 1% of them are corporate money ”.
Some of the biggest names on Wall Street have backed Bitcoin over the past year. Legendary investors Paul Tudor Jones and Stanley Druckenmiller have already invested in digital assets, and companies such as MassMutual and Ruffer Investment Company have taken large positions in BTC.
Last month, Anthony Scaramucci’s hedge fund SkyBridge Capital sent a request to the Securities and Exchange Commission to launch a new bitcoin fund.
This is in addition to the tens of billions contributed by MicroStrategy, Grayscale, PayPal and Square combined.
Goldman Sachs even changed the mindset of bitcoin and cryptocurrencies in general. The company has not only increased its human resources to include cryptocurrency experts, but has also provided advice on the peaceful coexistence of bitcoin and gold as a general precaution.
Coinbase, one of the world’s largest cryptocurrency exchanges, also reportedly selected Goldman for listing next year.