Goldman Sachs ready to buy crypto firms after FTX bankruptcy

Wall Street

Fin is a former junior editor at TechForge.

In the midst of FTX’s collapse and tanking crypto company valuations, leading financial services firm Goldman Sachs is eyeing up investment opportunities while prices are low.

During an interview with news outlet Reuters, Goldman Sachs executive Mathew McDermott said Wall Street are closely following the fallout from the collapse as calls for regulation in the industry grow stronger.

McDermott said the firm believes investment opportunities are now “priced more sensibly” than earlier in the year, and that it is currently looking into a number of possibilities.

Speaking on the FTX situation, he added that it has led to setbacks for the wider crypto market. Although he did highlight that despite FTX having become a “poster child” for the crypto space, the underlying tech of the industry “continues to perform”.

Since FTX’s bankruptcy saga began in early November, the crypto space has been turned on its head. Many crypto companies with connections to the exchange – of which there is a lot – continue to deal with the repercussions of its collapse.

Amidst the chaos, large investors like Goldman Sachs will be seeking profitable opportunities to invest at lower prices as concerns over FTX reduce valuations.

Here in the UK, digital bank Starling recently banned its users from making crypto purchases, citing the “high risk” involved in crypto activity. Customers with Starling can no longer buy Bitcoin or other cryptos, and users will be unable to send or receive transfers from crypto exchanges.

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