Institutional interest in bitcoin sets the latest bull run apart from 2017's retail-driven surge, Goldman's digital asset chief says

• Institutional interest in bitcoin sets the latest bull run apart from 2017's retail-driven surge, Goldman says.
• The head of digital assets has had over 300 conversations with institutional clients about bitcoin.
• Much of the institutional demand has been driven by fears around asset devaluation.
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Institutional interest in bitcoin sets the latest bull run apart from 2017's retail-driven surge, according to Goldman Sachs' Matt McDermott.

The global head of digital assets for Goldman's global markets division said on a Goldman podcast that his team has seen a "huge volume of institutional demand across [a] broad spectrum of different industry types," for digital assets during bitcoin's current bull run.

In 2017, retail-investor interest drove the market, McDermott said. Now, he's had "well over 300 conversations" about digital assets with institutional clients including hedge funds, asset managers, banks, corporate treasurers, insurance, and pension funds. Most of these conversations are focused on bitcoin and how investors can get exposure, said McDermott.

Corporate treasurers, for example, are interested in whether they should be adding bitcoin to their balance sheets. McDermott said this question spiked following news that Tesla invested $1.5 billion in the cryptocurrency.

The digital asset chief also said much of the institutional demand has been driven by "general fears around asset devaluation." Bitcoin's fixed supply positions it as a hedge against inflation, crypto enthusiasts say.

Aside from simply inquiring about it, many institutional clients are very bullish on bitcoin. According to a survey Goldman published last week, 22% of its clients expect the price of bitcoin to hit at least $100,000 in the next 12 months. McDermott also said the survey revealed that 61 percent of the clients expect their digital asset holdings to increase over the next year.

Bitcoin traded just under $51,000 Monday morning.