Goldman Sachs MD quits to start own hedge funds after minting millions in Dogecoin

Head of the emerging markets and managing director (MD) at Goldman Sachs investment bank, Aziz McMahon, stepped down from his position after 14 years. McMahon has recently turned a crypto millionaires after investing in Dogecoin. According to the report first broke by eFinancialCareers, the London-based Goldman Sachs executive resigned from his duties after minting millions of dollars when DOGE price hit record high, last week and now could be starting his own hedge fund. The world’s prominent investment bank Goldman Sachs had also implemented its own cryptocurrency trades and set up Bitcoin Desk earlier, last Friday. It was also offering investors the non-deliverable forwards (NDFs), bitcoin’s derivative that pays traders in cash, according to a Bloomberg report. 

In a statement, Goldman Sachs had indicated that it will “protect” its volatility by trading in cryptocurrency bitcoin (BTC, -3.39%) in block trades through CME Group, using Cumberland DRW as its trading partner. The US bank announced that it was ready to enter the fledgling market two months later due to the surge in demands from its institutional clients after the cryptocurrency’s market value was up 95 percent since the year’s start. Last week, as McMahon made millions, crypto traded at $57,385. The DOGE’s worth meanwhile has gone up by more than 130 times in 2021 as SpaceX and Tesla CEO Elon Musk has constantly influenced the share market with his pro-DOGE tweets causing Dogecoin frenzy on the market. 

Traditional finance shift to crypto market

On May 10, Elon Musk’s space exploration firm SpaceX also declared that it will now officially accept the Dogecoin (DOGE) payments for its next space mission in 2022. Top finance executives have scrambled to grab the positions in the lucrative crypto market, which Musk described as the “future currency of the Earth.” According to CoinGape, a former senior quantitative analyst at Bank of America in New York recently took a position at the crypto exchange Coinbase. He assumed the role of a senior software engineer. Nomura’s trade finance business’ Jesse Bornstein also quit his job to join as VP of institutional sales at Stakehound, a crypto firm that issues access to decentralized finance (DeFi). Last week, the CFO of the world’s largest hedge fund Bridgewater Associates John Dalby quit his job and joined Bitcoin trading and custodial services provider NYDIG. Traditional finance has been seeing a shift to the crypto market. Although Goldman Sachs has not officially specified the reason for departure for its MD, experts say he plans to start his own hedge funds.