Breaking: Goldman Sachs To Offer Over-The-Counter Crypto Options- Report
Goldman Sachs is close to announcing that it is the first major U.S. bank to trade an over-the-counter (OTC) crypto instrument, a recent report said. The firm reportedly traded a Bitcoin-linked instrument with crypto bank Galaxy Digital.
An OTC transaction is one that takes place directly over a private broker-dealer network, instead of a centralized exchange. With crypto, it could be a major medium through which firms can introduce more derivative products.
CNBC reported that Goldman’s transaction is an important step in the development of institutional investing in crypto. With OTC trading, Goldman Sachs will be taking on greater risk by being directly involved in the transaction, as opposed to the exchange-based BTC products that Goldman currently offers.
Goldman Sachs no stranger to crypto
Galaxy said the OTC option trade was much more relevant to markets, in comparison to other exchange-linked derivatives currently offered by the digital bank.
If introduced as a product, OTC crypto products will likely be aimed at institutional investors such as investment banks and hedge funds. Galaxy already offers some crypto derivatives, which Goldman Sachs recently began offering to interested clients.
Specifically, Goldman allowed its clients to gain exposure to an Ethereum fund operated by Galaxy. Last year, the crypto bank also began supplying liquidity to Goldman Sachs for its Bitcoin futures trading.
Crypto derivatives are sought by investors looking to gain exposure to the market without directly investing in it. The market for these instruments is led mostly by established crypto firms including Galaxy, Genesis and GSR Markets, CNBC said.
Goldman is now looking at establishing a crypto options market.
Institutional trading a major driver for crypto
Crypto-derivative products are likely to invite more institutional interest in the crypto market- a trend already seen growing since 2020. Recent data suggests that nearly all of Bitcoin’s trading volumes are dominated by large trading houses.
But the influx of institutional interest has also seen crypto markets trade more in line with U.S. stocks, which has dented Bitcoin’s potential as an inflation hedge, or even a gold alternative.
- Pro-Crypto Mike Selig Emerges As CFTC Chair Frontrunner, Gains Ripple CLO’s Endorsement
- ‘Every Crypto ETF You Can Imagine’: Expert Predicts Flurry of Filings After REX-Osprey’s 21 Applications
- Robinhood Lists Strategy’s Bitcoin-Backed Stocks, Boosting Saylor’s BTC Credit Model
- Bitcoin ETFs See 2025 Record Weekly Inflows of $3.2B as BTC Eyes New ATH
- Expert Predicts SHIB Rally as Shiba Inu Restores Shibarium After $4M Hack Shutdown
- FLOKI Price Prediction as ETP Listing Drives Adoption—Is a 160% Rally Ahead?
- BNB Coin Price Hits ATH as Derivatives Activity Soars—Is $1,520 the Next Stop?
- Aster Price Eyes $3 After Channel Breakout as Open Interest Surges to $1.37B
- Will XRP Price Hit $5 if the SEC Approves ETFs This Month?
- Bitcoin Price Hits $120K Ahead of Q4 — Can Citigroup’s Forecast Hold Up?
- Pi Network Price at Risk of Another Crash as Mysterious Whale Stops Buying
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
