Goldman Sachs Group Inc. is moving beyond the world of Bitcoin and expanding into Ether Options. Mathew McDermott, head of digital assets at Goldman Sachs, said that the bank plans to offer Ether options and futures trading in the coming months.
The latest step in the Wallstreet Giant’s crypto ambitions after Goldman restarted its trading desk this year. McDermott said that the bank also plans to facilitate trades via exchange-traded notes (ETNs) tracking Bitcoin.
Even after prices plummeted in May, falling from $60,000 to $33,000 in a matter of days, hedge funds are still enthusiastic about trading bitcoin.
McDermott said in an interview with Bloomberg, “We’ve actually seen a lot of interest from clients who are eager to trade as they find these levels as a slightly more palatable entry point. We see it as a cleansing exercise to reduce some of the leverage and the excess in the system, especially from a retail perspective. “
The Bank has also invested in crypto start-ups. Goldman led the $15 million investment in Coin Metrics in May. It put $5 million into fundraising round by Blockdaemon. “We are looking at a number of various companies that fit into our strategies direction,” he said.
Other banks also expanded their crypto operation. Cowen Inc. plans to offer “institutional-grade” custody services for cryptocurrencies. Standard Chartered Plc is setting up a joint venture to buy/sell virtual currencies.
In a survey of 850 institutions last week, Goldman found that close to one in 10 are trading crypto, and 20% are interested in it. “Institutional adoption will continue,” he said. “Despite the material price correction, we continue to see a significant amount of interest in this space.”
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