Goldman Sachs moving beyond the world of crypto, now planning to expand to Ether

Goldman Sachs moving beyond the world of crypto, now planning to expand to Ether

BREAKING | Jun 16, 2021 | WOZINGA NEWS

Goldman Sachs moving beyond the world of crypto, now planning to expand to Ether

  • Goldman Sachs Group Inc. plans to offer options and futures trading in Ether.
  • The bank is embracing digital assets far beyond its trading desks. Also, it is looking at several different companies that will fit in its strategic direction.

By Elah Mae Ariate Wozinga Journalist

Goldman Sachs, a United States Investment bank is expanding its crypto presence by offering options and futures trading in Ether. Head of digital assets at Goldman Sachs, Mathew McDermott confirmed the news in an interview with Bloomberg.

The bank is moving beyond the world of Bitcoin and expanding into Ether. Goldman Sachs Group Inc. plans to offer options and futures trading in Ether. The coin that fuels the Ethereum network, in the coming months, said McDermott.

“The institutional demand for cryptocurrencies will continue to grow, despite the recent bout of market volatility,” he added.

According to Cointelegraph, McDermott referenced a survey of 850 institutions last week. Nearly 10% of the respondents said they are trading crypto, and 20% are interested in entering the market.

Goldman Sachs offering Bitcoin derivatives

In May, Coindesk reported that Goldman Sachs started to offer its investors access to non-deliverable forward (NDFs). A derivative tied to bitcoin’s price that pays out in cash.

It is the latest step in the Wall Street behemoth’s crypto ambitions, following the relaunch of a trading desk this year to assist clients in dealing in publicly traded Bitcoin futures, according to Bloomberg. McDermott also stated that the bank intends to facilitate trades through exchange-traded notes that track Bitcoin.

Despite regulators’ warnings about the risks posed by cryptocurrency’s extreme volatility and role in money laundering, investment banks are stepping up to provide Bitcoin services to their large clients.

Even after prices fell from around $60,000 to $33,000 in a matter of days in May, hedge funds are still eager to trade Bitcoin.

The Bank invested in crypto Start-ups

The bank has also made investments in cryptocurrency start-ups, according to the report. It contributed $5 million to a fundraising round led by Blockdaemon, a company that designs and hosts the computer nodes that comprise blockchain networks.

In fact, Goldman led a $15 million investment in Coin Metrics in May, a provider of cryptocurrency and blockchain data to institutional clients, and McDermott joined the company’s board of directors.

Goldman is embracing digital assets far beyond its trading desks. According to McDermott, Goldman is looking at several different companies that will fit in its strategic direction.

Demand for cryptocurrencies will continue to grow despite its market volatility. Do you agree with McDermott?

Created with Perfect Survey

Statistics - View the results

Leave a Reply

Your email address will not be published. Required fields are marked *