In a recently published report by Bloomberg, it has been revealed that Goldman Sachs Group is dwelling deeper into the Bitcoin market as it is offering Wall Street investors a way to place huge bets. The investment giant has reportedly opened up trading with non-deliverable forwards, a derivative attached to the price of Bitcoin that pays out in cash.
Goldman Sachs Offers Bitcoin Derivatives to Wall Street Investors
As revealed, the investment bank then protects itself from the famous fluctuations associated with the cryptocurrency by purchasing and selling Bitcoin futures in block trades on CME Group Inc. Also, it should be known that they used Cumberland DRW as its trading partner.
Moreover, the firm in spite of being not active in the Bitcoin market introduced the wagers to its client without even making an announcement last month.
Max Minton, the Asia-Pacific head of digital assets of Goldman Sachs, said:
“Institutional demand continues to grow significantly in this space, and being able to work with partners like Cumberland will help us expand our capabilities.”
Adding further to his statement, he said:
“The new offering is paving the way for us to evolve our nascent cash-settled crypto-currency capabilities.”
Cryptocurrency’s Astronomical Price Gains and Client’s Interest
The Global Head of Business Development for Cumberland DRW, Justin Chow, said:
“Goldman Sachs serves as a bellwether of how sophisticated, institutional investors approach shifts in the market.”
Addressing the mainstream and rapid adoption of Bitcoin derivatives by Goldman Sachs, Chow added to his statement and said:
“We’ve seen rapid adoption and interest in crypto from more traditional financial firms this year, and Goldman’s entrance into space is yet another sign of how it’s maturing.”
In accordance with the statements released by Justin Chow, the ecosystem of crypto is growing rapidly, and Goldman Sachs may next offer hedge fund clients exchange-traded notes based on Bitcoin.