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Goldman Sachs Clients’ Interest in Crypto Derivatives
Goldman Sachs’ hedge fund clients are reportedly showing increased interest in crypto derivatives, driven by the resurgence of the crypto market. The bank officially launched its crypto trading desk in 2021 and has since been facilitating various Bitcoin-linked trades, including Bitcoin non-deliverable futures and CME BTC futures.
Client Engagement and Trading Offerings
Goldman currently offers cash-settled Bitcoin and Ether option trading, alongside CME-listed Bitcoin and Ether futures. However, the bank does not directly trade the actual underlying crypto tokens themselves. Max Minton, Goldman’s Asia Pacific head of digital assets, mentioned in a recent interview with Bloomberg that the recent approval of ETFs has reignited interest and activity among the bank’s clients.
Diverse Client Base and Usage of Crypto Derivatives
There has been a noticeable increase in client interest, onboarding, pipeline, and trading volume since the beginning of the year. The demand for crypto derivatives comes from a variety of clients, including traditional hedge funds, asset managers, banking clients, and specific digital asset firms. Clients are utilizing crypto derivatives for purposes such as directional bets, yield enhancement, and hedging.
Market Optimism and Future Trends
The surge in Bitcoin’s price to a record high above $72,000, triggered by the Bitcoin ETF launch and anticipation around the upcoming halving event, has sparked market optimism. Despite Bitcoin retracing to around $67,075, the outlook for crypto derivatives remains bullish.
Expansion and Potential Shift in Interest
A quarterly report from Genesis Trading last year predicted substantial expansion in the crypto derivatives sector. Most Goldman clients are currently focused on Bitcoin-related products, but there is potential for a shift towards Ether-related products if Ether ETFs receive approval in the US. Mathew McDermott, Goldman’s head of digital assets, expressed optimism about the approval of Ether ETFs back in January. The SEC is expected to make its initial ruling on a spot Ethereum ETF by May 23.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
