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Goldman Sachs’ crypto trading desk expands to Ether


Major investment bank Goldman Sachs has announced plans to launch Ethereum futures and options trading. The products expected to appear on the bank’s platform in the coming months. Hedge funds and investment companies will now have access to the full suite of Ethereum derivatives. Goldman Sachs plans to expand its cryptocurrency coverage to retail customers.

According to CoinShares, institutional inflows into Ether products this year alone totaled nearly $ 1 billion, with total assets of around $ 11.1 billion.

In the future, Goldman Sachs also plans to offer Bitcoin exchange-traded notes (ETNs) to users. According to McDermott, the launch of new instruments is dictated by demand from the financial institution’s clients.

Note that this year Goldman Sachs provided institutional players with access to Bitcoin futures. Lately, many investment banks have entered the crypto sphere.

The bank manages $ 1 trillion in assets. In case of demand for a new service, other large banks will catch up on the cryptocurrency market for Goldman Sachs. Ultimately, the availability of crypto-tools will become the standard for the banking industry.

Most banks are still on the sidelines. But this is changing as they begin to get used to how cryptocurrency works. And as their clients seek access to the $2.2 trillion market, so consumer demand is starting to pull them in.

The market decline didn’t reduce investor interest in cryptocurrencies

As noted by Bloomberg, despite all the warnings from regulators and the risks of cryptocurrency trading, investment banks are striving to provide large clients with access to this market.

As the head of Goldman Sachs for digital assets, Mathew McDermott, said, even the drop in the Bitcoin rate to $ 30,000 didn’t reduce the interest of the bank’s clients in cryptocurrencies.

“We do see a lot of interest in cryptocurrency trading from clients, especially since current levels are a more acceptable entry point, McDermott said. We see what happened as a clearing-up of the market to reduce leverage and system distortions. Especially from a retail investor perspective”.

Goldman Sachs invested in cryptocurrency services

Goldman Sachs has already invested in several startups developing cryptocurrency services. For example, the bank invested $ 5 million in blockchain company Blockdaemon. And spearheaded the $ 15 million investment round for institutional investor data provider Coin Metrics. In addition, McDermott has joined the Coin Metrics board of directors. “We are looking at many different companies that align with the direction of our strategy”, he commented. The CEO of Goldman Sachs argues that cryptocurrencies at the current level of interest are unlikely to become a passing fad.

A top manager at Goldman Sachs added that according to a survey of bank clients, every tenth institution has already invested in cryptocurrencies, and another 20% of those surveyed said that they are interested in digital assets. At the same time, Asian hedge funds are in no hurry to invest in Bitcoin and other cryptocurrencies.

“The adoption of digital assets by institutional investors will continue. Despite the significant correction in cryptocurrency rates, we see a lot of interest in this industry”, concluded McDermott.

Earlier, Goldman Sachs COO John Waldron said the bank’s clients are showing a growing interest in Bitcoin and other digital assets.

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