Highlights
- Goldman Sachs hedge fund clients are embracing crypto
- There is a general boost in adoption this year compared to 2023
- Spot Bitcoin ETF remains one of the key drivers of this renewed sentiment
Hedge Fund clients of American banking giant Goldman Sachs are renewing their interests in crypto Options, a trend that is notably matching up with the embrace of the product from retail traders. Per a Bloomberg report, the interest in crypto by the bank’s hedge fund clients has soared dramatically since the start of the year, a dramatic shift from the slow adoption from last year.
Crypto Interest Picking Up
Speaking in an interview, Goldman Sachs Asia Pacific Head of Digital Assets Max Minton confirmed this trend. He highlighted that the recent approval of the spot Bitcoin Exchange Traded Fund (ETF) product has catalyzed the interest in the ecosystem.
“The recent ETF approval has triggered a resurgence of interest and activities from our clients,” said Minton, adding that “Many of our largest clients are active or exploring getting active in the space.”
The digital currency ecosystem has seen a major embrace as the spot Bitcoin ETF product ushered in a supply crunch that has pushed BTC price back to a new All-Time High (ATH) above $73,000. This price reboot is an attractive force for institutional investors who now have a more regulated avenue to invest in Bitcoin through ETFs.
While Minton pointed out that it is basically the traditional hedge funds that are embracing the crypto options market through Goldman Sachs, he confirmed that the financial giant is looking to expand its client base to feature more bank clients and asset managers as well.
With Bitcoin now classified as a defined asset class with record ETF showoff since inception, Goldman Sachs is making the push to gain a good market share moving forward.
Goldman Sachs and the Crypto World
While Goldman Sachs has played a conservative role in the crypto ecosystem in recent times, the banking giant is one of the key pioneers of crypto options trading and it predicted a breakout year for crypto in 2024. Goldman Sachs set up its crypto trading engine in 2021 where it provides cash-settled Bitcoin and Ethereum options trading respectively.
Besides joining blockchain pilot testing, Goldman Sachs is also extending its influence in the digital currency ecosystem by investing in companies that align with its long-term growth prospects.
“We have a portfolio and will invest if or when it makes strategic sense,” Minton said.
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