Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Goldman Sachs’ hedge fund clientele is reportedly exhibiting heightened interest in crypto derivatives, driven by the revival of the cryptocurrency market.
The bank officially established its crypto trading desk in 2021. Subsequently, it began facilitating various Bitcoin-related transactions, including Bitcoin non-deliverable futures and CME BTC futures, after years of deliberation that began in 2017.
At present, Goldman provides cash-settled Bitcoin and Ether options trading, in addition to CME-listed Bitcoin and Ether futures. However, it does not engage in direct trading of the actual underlying crypto tokens.
Max Minton, Goldman’s Asia Pacific head of digital assets, informed Bloomberg in a recent interview that the recent approval of ETFs has rekindled interest and activity among the bank’s clients. Minton remarked that many clients are either currently participating in the crypto market or are contemplating entry.
Goldman Sachs Clients Utilize Crypto Derivatives for Various Objectives
According to Minton, there has been a significant rise in client interest, onboarding, pipeline, and trading volume since the start of the year.
A large portion of this demand originates from Goldman’s existing clients, especially traditional hedge funds. Nevertheless, the bank is also expanding its client base to encompass asset managers, banking clients, and select digital asset firms.
Related Posts
He noted that clients are employing crypto derivatives for a range of purposes, including directional bets, yield enhancement, and hedging strategies.
Bitcoin ETF Launch Fuels Market Optimism
This development follows Bitcoin’s recent climb to a record high exceeding $72,000, spurred by the Bitcoin ETF launch and expectations surrounding the forthcoming halving event.
Although Bitcoin has retraced to approximately $67,075 as of Monday, the outlook for crypto derivatives remains optimistic. A quarterly report from Genesis Trading last year forecasted significant growth in this sector, propelled by a notable reduction in spot market liquidity and an increasing trend towards the utilization of derivative instruments.
Currently, the majority of Goldman clients seem to be primarily concentrated on Bitcoin-related products. However, there is potential for a shift in focus towards Ether-related products if Ether ETFs gain approval in the US.
Mathew McDermott, Goldman’s head of digital assets, conveyed optimism regarding the approval of Ether ETFs back in January.
The SEC is anticipated to issue its initial ruling on a spot Ethereum ETF by May 23.
The post Goldman Sachs Sees Spike in Crypto Options Engagement Among Hedge Funds appeared first on Cryptonews.
