Goldman Sachs, the global investment banking giant has reopened its crypto trading desk, first started in 2018, and is all set to cater to its clients starting next week, as per a report by Reuters. The crypto trading desk is a part of companies’ digital asset and blockchain plans.
Goldman Sachs has restarted its cryptocurrency trading desk and will begin dealing #Bitcoin futures and non-deliverable forwards for clients from next week, a person familiar with the matter said. ????????????
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— Anna Irrera (@annairrera) March 1, 2021
The trading desk reboot could have come due to increasing client demand since many traditional banking giants such as BNY Mellon have started offering Bitcoin and crypto services while many others including JP Morgan, Fidelity Investment Group are contemplating doing the same.
Goldman Sachs Planning Bitcoin ETF?
The source familiar with the matter also revealed that Goldman Sachs is also exploring the potential of the Bitcoin Exchange Traded Fund, currently the hottest topic in the crypto-verse, especially after the launch of the first North American Bitcoin ETF by Purpose Group. The US regulatory bodies are yet to approve a Bitcoin ETF despite several pending applications and rejections. However, the growing popularity of Bitcoin among institutions and a trillion-dollar market cap could help its case in the US as well.
Apart from Bitcoin ETF, the American Investment banking giant is also looking to offer crypto custody services, something the firm has been eyeing since 2017. Now could be the perfect time for these financial giants to explore cryptocurrencies, as the likes of Ruffer Investment and CITI Group believe it is at the tipping point of mainstream adoption.
Apart from traditional financial giants, many fortune 500 companies and institutions are exploring the idea of using Bitcoin as a treasury reserve post-MicroStrategy and Tesla’s multi-billion dollar investment over the past month. The growing trust of institutions in Bitcoin as a store of value has forced many leading financial institutions to become a direct point of service for bitcoin, something they rejected only a couple of years ago claiming it to be another internet bubble.