By Nathan Ferguson
As per reports from the people having acquaintance with the issue, Goldman Sachs Group is pursuing an expansion in the services related to digital currencies thereof by providing its consumers with bilateral crypto offers. By the bilateral options, the customers owning Bitcoin (BTC) miners or crypto such as the hedge funds will be permitted to customize the trades thereof to accelerate hedge risks or yields.
The crypto trading head at Goldman Sachs Andrei Kazantsev stated in December that derivative-type hedging was high in demand and the next stage in this respect would be an options market. The interest of the Wall Street giant in the crypto space has been spiking since the relaunching of its desk for crypto trading in 2021’s March following an interruption of three years. Several moves have been taken by the lender to grow into a sector of cryptocurrency dissimilar to the majority of the peers thereof.
Galaxy Digital as a partner
As per a filing of the SEC (Securities and Exchange Commission) on 9th March, the crypto-curious consumers of Goldman Sachs would be permitted by the platform to access an Ethereum-based crypto fund via Galaxy Digital. Particular customers will pay charges to Goldman Sachs for being introduced to Galaxy Digital (the issuer).
Mike Novogratz is the founder of Galaxy Digital which is an investment company that provides liquidity for the BTC future’s offering. In 2021’s March, the launch of the Galaxy Institutional Ethereum Fund was carried out and now $250,000 is the threshold of its minimum investment.
Goldman optimistic on BTC
During the previous 12 months, bullish behaviour has been witnessed in the market valuation of Goldman Sachs. An analyst from the bank, in January, mentioned that competition could be witnessed between Bitcoin as well as gold in terms of being stores of value. In the words of the lender, at present, a share of nearly 20% in the market (which also takes account of gold) is held by Bitcoin. Goldman revealed that on reaching 50% in the market share, the price of BTC could be pushed to $100,000.
Notwithstanding the growing interest of the lender in cryptocurrency, the majority of prominent banks are even now reluctant to delve deep into the respective sector because of the issues such as deficiency in regulatory protection as well as volatility. Nonetheless, with the implementation of the executive order of Biden, a potential improvement is expected in the crypto scenario.