Goldman Sachs, a United States investment bank, is planning to offer Ethereum (ETH) derivative products in the coming months.
Managing director of digital assets at Goldman Sachs, Mathew McDermott, confirmed this development on 14th June 2021. He said the investment bank is expanding into Ethereum options and futures.
In a phone interview with Bloomberg News, McDermott said there will be an increase in the institutional demand for cryptocurrencies despite the recent negative market volatility:
“Institutional adoption will continue despite the material price correction, we continue to see a significant amount of interest in this space.”
He added that “We’ve actually seen a lot of interest from clients who are eager to trade as they find these levels as a slightly more palatable entry point. We see it as a cleansing exercise to reduce some of the leverage and the excess in the system, especially from a retail perspective.”
McDermott further pointed out that the company is exploring a number of different firms that fit into its strategic direction.
“We are looking at a number of different companies that fit into our strategic direction.”
According to McDermott, there has been a growing interest in crypto among institutions. In order to prove this fact, he referenced a survey of 850 institutions conducted last week. He said nearly 10% of respondents said they are already trading crypto, while 20% are interested in entering the market.
Ethereum (ETH) Continues To Record Institutional Inflows
Institutional inflows into Ethereum (ETH) continue to experience steady growth. According to CoinShares, inflows into Ethereum is relatively $1 billion this year alone, with total assets worth around $11.1 billion.
In early May 2021, Goldman Sachs launched a limited Bitcoin (BTC) derivatives trading desk. This is embedded within the bank’s Global Currencies and Emerging Markets division, overseen by McDermott’s digital-asset unit, according to Cointelegraph.