Goldman Sachs’ hedge fund clients are increasingly showing interest in crypto options trading, according to Max Minton, Goldman’s Asia Pacific head of digital assets. Minton attributes this surge in interest to the recent approval of Bitcoin ETFs, which has sparked renewed activity from clients.
Since the establishment of its cryptocurrency trading desk in 2021, Goldman Sachs has been offering various crypto-related services to its clients. These services include cash-settled Bitcoin and Ether option trading, as well as futures trading for these cryptocurrencies on the Chicago Mercantile Exchange. However, the firm does not directly trade the actual crypto tokens.
Minton noted that while last year was relatively subdued in terms of client activity, there has been a noticeable uptick in interest, onboarding, pipeline, and volume since the beginning of this year.
The renewed interest is primarily driven by Goldman’s traditional hedge fund client base. However, the bank is expanding its services to cater to a broader clientele, including asset managers, bank clients, and select digital asset firms.
Goldman’s clients are utilizing crypto derivatives for various purposes, including directional bets, yield enhancement, and hedging strategies. While Bitcoin-related products remain the primary focus, the potential approval of Ether ETFs in the United States could lead to increased interest in Ether-related products.
In addition to trading, Goldman Sachs is actively exploring opportunities in the digital asset space. The bank has developed a digital asset platform, GS DAP, and has conducted pilot tests on a blockchain network to facilitate connectivity among banks, asset managers, and exchanges. Furthermore, Goldman is investing in startups that align with its strategic vision for the digital asset market, particularly in blockchain infrastructure firms.”We have a portfolio and will invest if or when it makes strategic sense,” Minton stated.
