Goldman Sachs will soon offer Ethereum futures and options trading.
According to their head of digital assets, Goldman Sachs intends to expand on its existing crypto choices, having previously allowed its clients to trade publicly listed futures related to Bitcoin and investing in a number of crypto start-ups. A Goldman Sachs executive has announced that the investment firm would soon offer Ethereum futures and options trading.
Devendra Singh Khati
According to their head of digital assets, Goldman Sachs intends to expand on its existing crypto choices, having previously allowed its clients to trade publicly listed futures related to Bitcoin and investing in a number of crypto start-ups.
With a daily turnover of $23.9 billion, Ethereum futures contracts are an appealing prospect for traders looking to capitalise on a betting chance in the crypto market.
Investment banks and mainstream financial institutions are increasing their cryptocurrency services, with Goldman Sachs and other investment firms responding to the demand for bitcoin goods.
Mathew McDermott, Goldman's head of digital assets, spoke to Bloomberg on the interest for cryptocurrency futures, especially now that the price of Bitcoin has dropped:
“We’ve actually seen a lot of interest from clients who are eager to trade as they find these levels as a slightly more palatable entry point. We see it as a cleansing exercise to reduce some of the leverage and the excess in the system, especially from a retail perspective.”
Morgan Stanley set the ball moving in March of this year by becoming the first major US bank to allow access to Bitcoin money. Wall Street has typically avoided crypto assets, but in the last year, the financial sector has forced to respond to client demands. Goldman Sachs only just modified their stance on cryptocurrency, referring to Bitcoin as an asset class in May of this year:
"Bitcoin is now considered an investable asset. It has its own idiosyncratic risk, partly because it’s still relatively new and going through an adoption phase... But clients and beyond are largely treating it as a new asset class, which is notable—it’s not often that we get to witness the emergence of a new asset class."
The recent news that Goldman may be expanding its futures contracts to incorporate Ethereum are encouraging for the cryptocurrency and augur well for general cryptocurrency adoption. In May, a Goldman Sachs research study was leaked on Twitter, describing how Ethereum's use cases will lead to it replacing Bitcoin. Despite these disclosures, Goldman Sachs continues to limit its investors' investment to a maximum of 2.5 percent of their total net worth.
A Goldman Sachs executive has announced that the investment firm would soon offer Ethereum futures and options trading.
Goldman Sachs is going to star
Devendra Singh Khati
As a writer and copywriter, I've recently focused on making blockchain more accessible to those who are unfamiliar with the technology. As someone who has been around for a while, I understand how difficult it can be to avoid technical jargon when explaining any blockchain concept.