Connect with us

Hi, what are you looking for?

Economy

Goldman Sachs Sees Spike in Crypto Options Engagement Among Hedge Funds

Goldman Sachs’ hedge fund clients are reportedly showing increased interest in crypto derivatives, spurred by the resurgence of the crypto market.

The bank officially launched its crypto trading desk in 2021. It then began to facilitate various Bitcoin-linked trades, including Bitcoin non-deliverable futures and CME BTC futures, following years of contemplation dating back to 2017.

Currently, Goldman offers cash-settled Bitcoin and Ether option trading, alongside CME-listed Bitcoin and Ether futures. However, it does not directly trade the actual underlying crypto tokens themselves.

Max Minton, Goldman’s Asia Pacific head of digital assets, told Bloomberg in a recent interview that the recent approval of ETFs has reignited interest and activity among the bank’s clients. Minton noted that many clients are either currently active in the crypto space or are considering entering it.

Goldman Sachs Clients Embrace Crypto Derivatives for Diverse Purposes


According to Minton, there has been a noticeable increase in client interest, onboarding, pipeline, and trading volume since the beginning of the year.

A majority of this demand stems from Goldman’s existing clients, particularly traditional hedge funds. However, the bank is also broadening its client base to include asset managers, banking clients, and specific digital asset firms.

He mentioned that clients are using crypto derivatives for various purposes, such as directional bets, yield enhancement, and hedging.

Bitcoin ETF Launch Sparks Market Optimism


The development follows Bitcoin’s recent surge to a record high above $72,000, triggered by the Bitcoin ETF launch and anticipation around the upcoming halving event.

Despite Bitcoin retracing to around $67,075 as of Monday, the outlook for crypto derivatives remains bullish. A quarterly report from Genesis Trading last year predicted substantial expansion in this sector, driven by a significant decrease in spot market liquidity and a growing trend towards the use of derivative instruments.

Currently, most Goldman clients appear to be primarily focused on Bitcoin-related products. However, there is potential for a shift in interest 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.

The post Goldman Sachs Sees Spike in Crypto Options Engagement Among Hedge Funds appeared first on Cryptonews.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

In a note to clients, Goldman Sachs, one the world’s largest investment bank, advised against extrapolating data from previous Bitcoin halving cycles due to...

Economy

Centralized cryptocurrency exchanges (CEXs) like Binance experienced a large surge in trading volumes between October 2023 and March 2024, according to Bybit’s 2024 Institutional...

Economy

Binance, the world’s largest cryptocurrency exchange, secured a highly anticipated crypto license in Dubai following the resignation of Changpeng Zhao “CZ” as CEO. Binance...

Economy

Iconic Paris fashion house Maison Margiela announced an expansion of its Web3 fashion offerings on Wednesday with the launch of its new NFT MetaTABI....

Economy

Venture capital funding for cryptocurrency and blockchain projects has experienced its first quarterly rise since 2021.  Crunchbase data published today reveals that Web3 startups managed to...

Economy

Despite Web3’s challenging journey in recent years, funding for the sector bounced back in the first quarter this year. It marks the first increase...

You May Also Like

Financial Advisors

[#item_full_content]

Financial Advisors

[#item_full_content]

Financial Advisors

The humongous outbreak of the dreaded coronavirus has brought about a groundbreaking change in what the world perceived as ‘normal’. With an estimated 280,391,189...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 Respect Investment. All Rights Reserved.