Goldman Sachs To Start Offering BTC Derivatives To Investors: Report

Goldman Sachs to start offering BTC derivatives to investors as the market showed little to no signs of slowing down with banks starting to take notice. BTC and the rest of the cryptos rallied to a record high as the institutional demand rising as well so let’s read more in our latest Bitcoin news.

Goldman Sachs to start offering BTC derivatives as one of the earlier adopters in the crypto space that explore potential opportunities by restarting the crypto trading desk at the start of the year. Citigroup announced today that the company will also explore the possibility of crypto products amid the surging client interest about 3 months behind Goldman.

so @GoldmanSachs is going bigger into #BTC with derivative NDFs for customers that it hedges with @CMEGroup Bitcoin future via trades with @DRWTrading — whew — got that? story on terminal now will post soon

— Matt Leising (@mattleising) May 6, 2021

Goldman Sachs event went as further as to introduce BTC-based products to clients in the private wealth management arm in March and the bank even dabbled in selling notes that are linked to the performance of the exchange-traded fund with crypto exposure. The bank started offering BTC products to clients after months of cautious experimentation. In what seems to be a sign of confidence, the bank will start offering BTC-based derivative products to the clients.

According to Bloomberg, the derivatives the investment bank started offering are non-deliverable forwards while NDFs are cash-settled and short-term contracts which work similarly to futures where the asset aren’t exchanged. This will allow Goldman’s clients to speculate on the long and short side of the Bitcoin price action. The company will hedge against Bitcoin’s historically high volatility by purchasing CME futures in block trades. Bloomberg announced that the bank will use Cumberland DRW as the trading partner.

Like Citi, JPMorgan started entertaining the possibility of offering the actively managed BTC fund to the clients, and Blackrock even which is the world’s biggest asset management firm also added BTC as an investment offering in the two of its funds. With other major institutional players soon to follow, mass crypto adoption seems more likely.

The Goldman Sachs CEO expects the digital currency world to see a big evolution with current regulations preventing the banks from acting as a principle around crypto. David Solomon said that he thinks the BTC and digital currency world will experience a huge revolution regarding the regulations in the United States. He made the comments during an interview with CNBC but he didn’t reveal much about what Goldman Sachs was doing when It comes to BTC which only suggests that the regulatory landscape in the US prevents banks from doing so.