Goldman Sachs may begin operations in Bitcoin and Ethereum, pending regulatory approval, said CEO David Solomon.
Goldman Sachs' Crypto Market Prospects
During a Reuters event, David Solomon noted that Goldman Sachs is ready to evaluate market entry into Bitcoin and Ethereum, conditional on regulatory consent. Bitcoin recently surpassed $100,000, fueled by optimism about the cryptocurrency's future under new President Donald Trump. Solomon also mentioned forthcoming but uncertain regulatory changes. Goldman Sachs has been actively exploring blockchain, launching the GS DAP tokenization platform in 2022.
Expectations for M&A Activity
Solomon also discussed a potential rebound in mergers and acquisitions (M&A), noting that M&A activity might exceed the 10-year averages by 2025. Despite recent lags in private equity, there is an expectation for increased activity next year. Goldman Sachs' investment banking division has seen recovery, while hedge funds are showing growing interest in cryptocurrency products.
Trump's Tariffs and Rate Implications
Trump's new tariffs proposals might also impact markets. With proposed tariffs of 10% on Chinese goods and 25% on imports from Canada and Mexico, Goldman’s Chief Economist Jan Hatzius noted these measures could elevate inflation.
Goldman Sachs' plans to expand in the crypto sphere are contingent on regulatory changes. Concurrently, the U.S. economic policies under Trump may significantly affect inflation expectations and the Federal Reserve's policies.
