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Goldman Sachs hedge fund clients are reportedly showing increased interest in crypto derivatives due to the resurgence of the crypto market.
The bank officially launched its crypto trading desk in 2021. After that, we started promoting various services. BitcoinAfter many years of deliberation dating back to 2017, we launched linked trading such as Bitcoin Non-Delivery Futures and CME BTC Futures.
Currently, Goldman is using Bitcoin for cash payments. ether Options trading alongside CME-listed Bitcoin and Ether futures. However, the actual underlying crypto tokens themselves are not traded directly.
Max Minton, Goldman’s head of digital assets in Asia Pacific, said: Bloomberg recent interview The bank says the recent approval of ETFs has reignited interest and activity among bank customers. Minton noted that many of his clients are currently active in or considering entering the cryptocurrency industry.
Goldman Sachs clients use crypto derivatives for a variety of purposes
Since the beginning of the year, Minton said the company has seen significant increases in customer interest, onboarding, pipeline and deal volume.
Much of this demand comes from Goldman’s existing clients, particularly traditional hedge funds. However, the bank is also expanding its customer base to include asset managers, banking customers and certain digital asset companies.
He said clients use cryptocurrency derivatives for a variety of purposes including directional betting, yield enhancement and hedging.
Bitcoin ETF launch increases market optimism
This development follows Bitcoin’s recent surge. All-time high of over $72,000triggered by the launch of a Bitcoin ETF and expectations for the upcoming halving event.
Despite Bitcoin recovering to around $67,075 as of Monday, the outlook for crypto derivatives remains bullish. Genesis Trading last year’s quarterly report Significant expansion is expected in this fieldThis is caused by a significant decrease in spot market liquidity and an increased trend in the use of derivative instruments.
Currently, most of Goldman’s clients appear to be primarily focused on Bitcoin-related products. However, if the Ether ETF is approved in the US, interest may shift to Ether-related products.
Matthew McDermott, head of digital assets at Goldman, said: expressing optimism About the approval of Ether ETF back in January.
The SEC is expected to issue its first ruling on the Spot Ethereum ETF by May 23rd.
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