Mathew McDermott, executive of Goldman Sachs explains the firm is already doing its homework on a few crypto firms.
Crypto valuations have been slumped by the recent FTX calamity. Financial services firm Goldman Sachs is hoping to fly in and invest millions while they can get a good deal on crypto.
Cointelegraph.com reports:
The FTX liquidation crisis and bankruptcy saga have turned the crypto space upside down since the beginning of November. The collapse of FTX continues to have a domino effect, affecting crypto-focused companies that have some exposure to the embattled firm. Because of this, institutional investors like Goldman are looking for opportunities to buy and invest at lower prices while the effects of FTX are lowering valuations.
Reuters interviewed Mathew McDermott, who reportedly said big banks are seizing opportunities in crypto as the FTX chaos showed a necessity for more regulation within the crypto space.
Cointelegraph.com continues:
Commenting on the FTX debacle, McDermott also noted that in terms of sentiment, the market encountered setbacks. However, the traditional finance executive highlighted that though FTX became a “poster child” of the space, the underlying tech behind the industry “continues to perform.”
Fox Business reports:
Goldman Sachs plans to spend tens of millions of dollars to buy or invest in crypto companies after the collapse of the FTX exchange hit valuations and dampened investor interest.
While the amount Goldman may potentially invest is not large for the Wall Street giant, which earned $21.6 billion last year, its willingness to keep investing amid the sector shakeout shows it senses a long term opportunity.
Uncertainty among small investors scares them away, but among huge banks and funds, the time to seize a deal is of the present moment.
Pat’s recent reaction to FTX and Crypto is here:
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