In a recent CNBC Squawk Box interview, Solomon dismissed the idea that Bitcoin could compete with the US dollar, labeling it a speculative asset.
“I don’t see Bitcoin as a threat to the US dollar,” Solomon said.
“At the end of the day, I’m a big believer in the US dollar… [and] Bitcoin is a speculative asset, an interesting speculative asset.”
Bitcoin recently hit an all-time high of nearly US$109,000, buoyed by optimism following mentions by public figures like President Donald Trump. However, Bitcoin critics argue its volatility and limited utility prevent it from challenging the US dollar’s global reserve status. Supporters of the cryptocurrency agree, noting its design is not suited to compete directly with fiat currencies.
While Bitcoin’s role as a currency remains debatable, its appeal as an investment is undeniable. Institutional players, including Goldman Sachs, are increasingly allocating significant resources to Bitcoin exchange-traded funds (ETFs).
Goldman Sachs holds approximately US$710 million in BlackRock’s iShares Bitcoin Trust, alongside other positions in Fidelity, Grayscale, and Invesco Galaxy Bitcoin ETFs, according to its latest Securities and Exchange Commission (SEC) filings. This reflects a broader trend among Wall Street giants embracing Bitcoin as an asset class. BlackRock’s iShares Bitcoin Trust alone manages over US$60 billion in assets.
Other major banks, including Wells Fargo and Morgan Stanley, have also ramped up Bitcoin-related investments. Wells Fargo expanded holdings in Grayscale, Fidelity, and VanEck Bitcoin Trust funds, while Morgan Stanley significantly increased its Bitcoin ETF allocations this year.
Though Bitcoin’s speculative nature keeps it from rivaling the dollar, the influx of institutional investments signals a growing acknowledgment of its value in diversified portfolios. Bitcoin may not replace traditional currency, but it continues to carve out a significant space in global finance.
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