Goldman Sachs Turns FTX Crisis into Opportunity

While the cryptocurrency market is going through a difficult period due to the FTX crisis, the statement made by a leading bank created excitement.

Many companies are going through a difficult process due to the domino effect that emerged after the collapse of the third largest cryptocurrency exchange in the world. The crisis, which caused the problem of investor confidence, was a complete disaster for many companies that were exposed to FTX. Goldman Sachs plans to spend tens of millions of dollars buying or investing in these crypto companies.

Goldman’s head of digital assets, Mathew McDermott, told Reuters that the FTX crisis has increased the need for more reliable and systematic institutions in the industry. According to the manager, big banks see an investment opportunity in such a situation. Goldman does due diligence for a number of different crypto companies without providing details. “We’re seeing interesting opportunities at much more reasonable prices,” McDermott said in an interview last month.

FTX filed for Chapter 11 bankruptcy protection in the United States on November 11, following its sudden collapse. While this situation affects other companies that have invested in the stock market, new bankruptcies are feared. According to McDermott, blockchain technology is promising. While the amount Goldman could potentially invest isn’t huge for the Wall Street giant, which made $21.6 billion last year, its willingness to continue investing amid the industry’s disaster indicates it perceives a long-term opportunity. This is a good development for Bitcoin (BTC), which has been affected by the FTX crisis.