Crypto Interest Resurges Among Goldman Sachs Clients Sparked by Bitcoin ETFs Approval
Summary:
Goldman Sachs sees a renewed interest in cryptocurrencies among its clients, sparked by the approval of Bitcoin-based exchange-traded funds (ETFs), according to Max Minton, the firm's Asia Pacific digital assets head. Despite not offering direct crypto products, the company noticed an uptick in client interest and activity through its derivatives offerings. Bitcoin-linked investments were the top choice among clients. Despite the bleak chances of U.S Ether ETF approval, Goldman Sachs aims to extend its services to a wider clientele, including asset management funds, banks, and specialized crypto firms.
In 2023, Goldman Sachs has noticed a resurgence of interest in cryptocurrency among its clients. The renewed enthusiasm was sparked by the approval of Bitcoin-based exchange-traded funds (ETFs), said Max Minton, the firm's chief of digital assets in the Asia Pacific region. On March 24, a Bloomberg report quoted him saying that many of the company's major clients were either reactivating their involvement in cryptocurrencies or considering doing so. The January nod of acceptance for ten fresh Bitcoin ETFs in the U.S, according to him, was a major catalyst, making digital coins a fundamental part of the mainstream market.
Minton pointed out that cryptocurrency demand primarily originated from the company's current client base, facilitated through Goldman's options and futures. Hedge funds were especially active. The end of 2023 witnessed Goldman Sachs managing a record $2.8 trillion in assets.
Despite opening its first cryptocurrency trading desk in 2021, interestingly, the company does not currently offer direct crypto products to its clientele. The trading desk only offers exposure to cryptocurrency derivatives such as Bitcoin and Ether options and futures. Following a relatively subdued 2022, Minton noticed an increase in client interest, signups, and trading volume since the year's commencement.
He noted that clients used derivatives predominantly to gain exposure to cryptocurrency volatility and also to make calculated price forecasts for the foreseeable future. Bitcoin-linked investments were the top preference among engaged clients, he revealed.
Minton mentioned the possible endorsement of a U.S Ether ETF as a potential catalyst to drive institutional clients towards Ether. Nevertheless, Bloomberg ETF analysts believe that the chances of approval by May are slim at 35%, attributing this to the Securities and Exchange Commission's ongoing incommunicado approach towards potential fund issuers.
Nonetheless, Minton disclosed that Goldman Sachs would strive to extend its services to "a broader clientele universe", encompassing asset management funds, banks, and specialized cryptocurrency firms in the future.
Published At
3/25/2024 7:53:45 AM
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