Goldman Sachs plans to spend millions of dollars to buy or invest in undervalued crypto companies in the post-FTX implosion market depression, as it sees long-term market opportunity, according to Reuters on Tuesday.
See related article: Hong Kong crypto exchange AAX has lost most staff, unlikely to reopen, says former executive
Fast facts
- Mathew McDermott, Goldman’s head of digital assets, said in an interview with Reuters last month that the investment bank sees “interesting” investment opportunities at “reasonable prices.”
- The investment bank is doing due diligence on crypto companies and provided no further details.
- McDermott added that FTX’s downfall has eroded sentiment and set the market back, but the underlying technology remained intact; and the fiasco intensified the need for more “trustworthy and regulated” market participants.
- FTX filed for Chapter 11 bankruptcy in November. Its implosion also resulted in market contagion that spread to crypto lenders BlockFi and Genesis.
- See related article: Who is exposed to FTX? A running compilation on a rapidly moving target