Despite the rocky days Bitcoin has been through in recent months, major Wall Street financial institutions, namely the NYSE, Goldman Sachs and the Fortress Investment Group, continue to believe in cryptocurrency. These companies have researched Bitcoin ventures and invested in the underlying technology called blockchain.
Fortress is particularly invested in the actual cryptocurrency and in a hedge fund that supports companies that focus on building tools for Bitcoin. The NYSE is invested in Coinbase, a large Bitcoin wallet and exchange based in San Francisco. Meanwhile, Goldman Sachs has invested in Circle, which seeks to make using Bitcoin intuitive for the average person as opposed to many Bitcoin transactions that require a more advanced understanding of computers.
Bitcoin investing on Wall Street
According to David Berger, founder of the CEO of the New York City-based Digital Currency Council, these major Wall Street institutions invest in Bitcoin primarily for monetary reasons. “But at the same time, like all of us, they are part of a learning curve,” he adds. The Digital Currency Council is a cryptocurrency association that offers certifications to Bitcoin companies.
As of this writing, Fortress could take a big loss on its Bitcoin investment as the cryptocurrency has fallen from its high of $ 1,200 in 2013 to less than $ 250 this year. Early last year, the company was more focused on investing in Bitcoin companies than it acquired a stake in Pantera Capital Management.
In May, the NYSE launched its Bitcoin index to bring more transparency to the digital currency market. “Bitcoin values are quickly becoming a data point that our clients want to follow when considering trading, trading or investing in this emerging asset class,” said Thomas Farley, President of NYSE Group, in a statement during the introduction.
However, industry analysts say these institutions are starting to diversify their bets as some of their ventures become more focused on blockchain technology.