Bitcoin has repeatedly pushed to new all-time-high price marks since the election, but it’s still no threat to the U.S. dollar, Goldman Sachs’ CEO said during a televised appearance Wednesday.
In an interview with CNBC “Squawk Box” host Andrew Ross Sorkin, Goldman head David Solomon said Bitcoin is not in competition with the U.S. dollar—a major sticking point for proponents and critics of the digital asset.
“I don’t see Bitcoin as a threat to the US dollar,” Solomon said. “At the end of the day, I’m a big believer in the U.S. dollar… [and] Bitcoin is a speculative asset, an interesting speculative asset.”
Bitcoin’s critics argue the digital currency could undermine the strength of the U.S. dollar, diminishing the United States’ economic might. Meanwhile, the coin’s supporters say its volatility and design limit its utility as a currency. And for that reason, they argue, Bitcoin could never practically compete with the U.S. dollar.
But whether Bitcoin is likely to give the U.S. dollar a run for its money, one thing is clear: Banks such as Goldman Sachs are rushing to invest in it.
Institutional investors’ dollars have flooded spot Bitcoin exchange-traded funds following their approval in the U.S. early last year. BlackRock’s iShares Bitcoin Trust—the largest such ETF—holds more than $60 billion in assets under management as of writing time, iShares data shows.
Goldamn Sachs was the second-largest holder of BlackRock’s iShares Bitcoin Trust per the firm’s latest SEC filing for the quarter ending September 30. Its holdings had swelled to $710 million by that point, plus the bank also had $79.5 million in the Fidelity Bitcoin ETF, $35.1 million in the Grayscale Bitcoin Trust, and $56.1 million in the Invesco Galaxy Bitcoin ETF.
Other banks have made similar investments into Bitcoin. Wells Fargo last year broadened its holdings in Bitcoin-related funds such as the Grayscale Bitcoin Trust by making new investments in the Fidelity Wise Origin fund, Invesco Galaxy Bitcoin ETF, iShares and VanEck Bitcoin Trust funds, the bank’s latest 13F-HR filing shows. Meanwhile, Morgan Stanley (MS) increased its Bitcoin ETF holdings in 2024, according to its filings with federal regulators
Edited by Stacy Elliott
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Source: https://decrypt.co/302294/bitcoin-not-threat-us-dollar-goldman-sachs-ceo
