With Goldman Sachs onboarding clients for its bitcoin derivatives products while having no plans to further expand its product offerings and JP Morgan all set to provide clients to and bullish on ICE’s Bakkt, a big movement in bitcoin trading volume can be anticipated.
Big Movement Coming for Bitcoin Market
According to the latest reports, Goldman Sachs that announced its crypto trading desk in May is onboarding clients to actively trade its bitcoin derivatives products. Moreover, it is also exploring ways to offer crypto custody solutions as we reported some time back.
As per the direct sources, the firm is sticking to its bitcoin derivatives products and is in no rush to offer any new tradable products tied to the market. Previously, it has been reported that the firm is actively looking into creating a non-deliverable derivative of ether which is currently not the case.
Given the fact that ether is not being traded on any regulated exchange. Also, earlier this year, US Cboe Global Markets talked about launching an ether futures product but that is yet to be announced.
Goldman Sachs clients might not be looking for new products but they are surely interested in the market. It has been revealed that customers would be calling experienced traders and bankers to get an insight into the crypto market.
Another rush of trading volume will be attributed to the launch of Bakkt and release of its first physically delivered bitcoin futures contracts on December 12 that means once the trade is settled, actual bitcoin will be exchanged.
Actually, JP Morgan is all set to deliver the clients to the platform and is bullish on its launch. One of the JP Morgan staffers has been quoted as saying,
“Bakkt provides a clear and clean regulatory construct to engage with Bitcoin. No smoke and mirrors. No regulatory risk. No outsized legal risk. Our compliance and legal team have done a deep dive on Bakkt and our integration/execution protocols. It all works and it all works better than what we expected. The custody solution is the real story there and is ultimately what has provided us the bandwidth (legally) to offer options to clients.”
It has been further added, “Not confirming any product or offering, but I can speculate that we will have a trading desk and that clients will be able to access Bitcoin, via Bakkt, in some way shape or form.”
While the other staffer shared, “Bakkt offers an easy pathway to offer institutional clients access that gives us legal and risk comfort. My very educated guess is that we offer trading capabilities within our commodities and forex space that includes Bitcoin via Bakkt. Given that all of the legal and compliance due diligence is all but done, we should see volumes begin and increase here (with respect to Bitcoin trading) as Bakkt ramps up. Where products and services go in the digital asset space from there will take on a life of its own. You can imagine that we aren’t necessarily considered ‘first movers’ in banking. But that’s because we don’t have to be. Still, our leadership likes Bakkt and are comfortable with what they are set to bring to market.”