According to Bloomberg, not only retail traders around the world but also hedge fund clients of Goldman Sachs are returning to the cryptocurrency market. Max Minton, the head of digital assets for Goldman Sachs Asia Pacific, stated in an interview that Goldman Sachs launched a cryptocurrency trading desk in 2021. Currently, they offer cash-settled Bitcoin (BTC) options and Ether (ETH) options trading. They also provide Bitcoin and Ether futures listed on the Chicago Mercantile Exchange (CME). The company has not yet opened trading for underlying cryptocurrencies.
Minton mentioned that most of the demand comes from Goldman Sachs’ existing clients, primarily traditional hedge funds. He also stated that the bank is expanding to a “broader client base,” including asset management companies, banking clients, and selected digital asset firms. He pointed out that clients are utilizing cryptocurrency derivatives for directional bets, yield enhancement, and hedging purposes.
Minton stated that Bitcoin-related products are still the main focus for most clients, but interest in Ether-related products may change depending on whether Ether spot ETFs are approved in the United States.
Investing in the crypto space
In addition to trading, Goldman Sachs is actively tokenizing traditional assets using blockchain technology. The bank has launched a digital asset platform called “GS DAP” and recently participated in a pilot project that connects banks, asset management companies, and exchanges on a blockchain network.
Goldman Sachs also makes strategic investments in innovative companies that align with its vision and the development of the digital asset market structure, primarily blockchain infrastructure companies. Minton said, “We have a portfolio, and we invest when it becomes strategically important.”
