The recent approval of spot Bitcoin exchange-traded funds (ETFs) is fueling a resurgence of interest in cryptocurrency markets with hedge funds, a core client base for Goldman Sachs, showing renewed enthusiasm for the asset class.
Goldman Sachs launched its cryptocurrency trading desk in 2021 and currently offers clients access to cash-settled Bitcoin and Ether options, as well as CME-listed Bitcoin and Ether futures, even though the bank does not directly trade the underlying cryptocurrencies themselves.
Goldman Asia Pacific’s head of digital assets, Max Minton, has said that the ETF approval “triggered a resurgence of interest and activities” from the bank’s clients. The majority of this demand is coming from Goldman’s existing client base, particularly traditional hedge funds.
However, Minton noted that the bank is also expanding its reach to “a wider universe of clients,” including asset managers, traditional bank clients, and select digital asset firms. He noted clients are using crypto derivatives for a variety of purposes, including directional bets on the price of cryptocurrencies, yield enhancement strategies, and hedging.
Bitcoin remains the primary focus for Goldman’s clients when it comes to crypto-related products, although interest in Ether-based products could shift if and when Ether ETFs receive regulatory approval in the United States.
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- Source: https://www.cryptocompare.com/email-updates/daily/2024/mar/25/
