Goldman Sachs clients’ interest in BTC surges: What’s the reason?

Source: Blockchain Knight

The expectations surrounding BTC’s upcoming halving have triggered a clear shift in investor sentiment. For example, Goldman Sachs’ hedge fund clients have seen a surge in interest in the Crypto asset market.

This resurgence of enthusiasm is not limited to speculative individual investors, but also extends to sophisticated institutional investors.

Max Minton, head of digital assets for Asia Pacific at Goldman Sachs Group, said that the approval of the BTC ETF has reignited the interest of the company’s clients. Many people are either actively investing in the Crypto asset market or exploring the potential to do so.

Minton added: "Last year was a quieter year, but since the start of this year we have seen an uptick in client interest in onboarding, pipeline and deal volume."

Goldman Sachs' current clients are mainly traditional hedge funds, which generate most of the returns.

In addition, Goldman Sachs is expanding its business scope to cover a variety of clients. These clients include asset managers, their own banking clients and certain companies specializing in digital assets.

Minton mentioned that customers use Crypto asset derivatives for speculative predictions, increased yields and hedging.

Minton also pointed out that BTC-related products still receive the most attention from customers. However, customer interest in Ethereum-related products may changebased on the potential approval of an Ethereum ETF in the United States.

BTC is about to be halved, which is also what prompts people to pay attention to BTC again.

This event will occur at the end of April, when BTC mining rewards will be halved, which will prompt miners to upgrade to more efficient technology to maintain profitability.

This quadrennial update is critical to maintaining BTC’s economic model, and the reward will drop from the current 6.25 BTC to 3.125 BTC.

After the BTC halving in 2012, the market value soared by more than 8,000%. Likewise, after the 2016 halving, the value of BTC increased by over 1,400%. Likewise, after the 2020 halving, the value of BTC increased by more than 700%.

Although the S2F (stock-to-flow) model commonly applied to commodities such as gold has its flaws, it is one way to assess the value of BTC.

The S2F model has demonstrated historical correlation with BTC price fluctuations. As BTC becomes increasingly scarce, experts expect its value to climb from its current price.

Pedro Palandrani, a researcher at Global There is a correlation between the rise in BTC prices."

"According to the S2F model, the price of BTC may rise to more than $130,000 by 2028."

From trading to blockchain innovation, Goldman Sachs’ involvement in the crypto asset market reflects broader institutional recognition of digital assets

With the halving approaching, the bank’s positive stance on digital assets, coupled with the growing interest from its clients, represents a critical moment for the crypto asset market.