- Goldman Sachs reports a resurgence of interest in cryptocurrencies among its hedge-fund clients following the recent bitcoin ETF approval.
- The bank’s crypto trading desk, launched in 2021, offers cash-settled bitcoin and ether options, alongside CME-listed futures.
- Clients, primarily hedge funds, are utilising crypto derivatives for directional bets, yield enhancement, and hedging purposes.
It’s not just individual retail traders worldwide who are re-entering the cryptocurrency markets; even hedge-fund clients of Goldman Sachs are showing renewed interest. In an interview, Max Minton, Goldman’s Asia Pacific head of digital assets, noted, “The recent ETF approval has triggered a resurgence of interest and activities from our clients.” He added, “Many of our largest clients are active or exploring getting active in the space.”
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Goldman offers cash-settled bitcoin and ether option trading
Goldman, which initiated its crypto trading desk in 2021, currently offers cash-settled bitcoin and ether option trading, along with CME-listed bitcoin and ether futures. However, it does not directly trade in the underlying crypto tokens. “Last year was relatively quiet, but we’ve noticed a surge in client interest, onboarding, pipeline, and volume since the beginning of this year,” Minton remarked.
The majority of demand comes from Goldman’s existing clients, primarily traditional hedge funds. Additionally, the bank is broadening its client base to include asset managers, bank clients, and specific digital asset firms. According to Minton, clients are employing crypto derivatives for various purposes such as directional bets, yield enhancement, and hedging.
