The people returning to the cryptocurrency markets are not simply the “YOLO” retail traders of the world. Goldman Sachs’s hedge fund clients also are.
According to Max Minton, head of digital assets for Goldman Sachs’ Asia Pacific region, the approval of the ETF has spurred a renewed interest and activity from their clients. Numerous of their biggest clients are involved in the space actively or are considering it.
Goldman, which opened its cryptocurrency trading desk in 2021, offers CME-listed Bitcoin and Ether futures along with cash-settled Bitcoin and Ether option trading. The cryptocurrency tokens that underlie it are not traded.
Although last year was a slower year, Minton noted that since the beginning of the year, clients’ interest in onboarding, pipeline, and volume has increased.
The bulk of demand is generated by Goldman’s current clients, which primarily consists of conventional hedge funds. According to him, the bank is also reaching out to “a wider universe of clients,” which includes certain digital asset enterprises, asset managers, and bank customers.
According to him, clients are employing cryptocurrency derivatives for hedging, yield enhancement, and directional bets. The majority of clients are still interested in products linked to bitcoin, but if Ether ETFs are approved in the US, demand in products related to ether may shift.
In addition to trading, Goldman is involved in the blockchain-based tokenization of conventional assets. The bank most recently took part in a pilot test on a blockchain network that links exchanges, asset managers, and banks. The bank also introduced the GS DAP digital asset platform.
In addition, Goldman has made venture investments in startups—mostly blockchain infrastructure companies—that are strategically aligned with its goals and the evolution of the digital asset market structure.
According to Minton, we have a portfolio and will invest if and when it makes strategic sense.
