Goldman Sachs reopens its crypto trading desk
Goldman Sachs reopens its crypto trading desk
Crypto

Goldman Sachs reopens its crypto trading desk

By Eleonora Spagnolo - 2 Mar 2021

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The banking giant Goldman Sachs Group Inc. is back in the cryptocurrency business, stating that they will reopen their crypto trading desk within a week. 

According to Reuters, it appears that the banking giant will begin trading bitcoin futures and non-deliverable forwards (NDF) for clients as early as next week

This trading desk is part of Goldman’s activities in the emerging digital asset sector. A sector that already entails many blockchain-based projects along with other central bank digital currencies. 

Not only that, but the report also speaks of an exploration by the banking giant of a potential bitcoin exchange-traded fund. In this regard, Goldman has already issued a request for information to explore the custody of digital assets. 

This return to the world of crypto through the trading desk, comes at a time when interest in bitcoin is skyrocketing. Especially from institutions that, after the 470% increase in the last year recorded by the crypto queen, have questioned whether they should be entering the market to hedge against inflation. 

Goldman Sachs is riding the crypto-friendly trend

This is not the first time the banking giant has explored and moved into the crypto world. Notably, Goldman’s crypto trading desk with its NDFs – futures contracts without the option of delivery – had already been established in 2018

The problem, at that time, was the declining interest or a bearish trend towards the queen of cryptocurrencies which had recorded a continuous decline since its ATH – all-time high of December 2017. 

Today, the situation may be different. There is talk of ATH breaking through $58,000 on February 21st, 2021, and support remaining around $45,000. 

This bullish trend becomes attractive for bitcoin’s involvement in traditional trading as well, with investors eager to take riskier positions chasing yield with low-interest rates. 

This is why the crypto derivatives market looks set to grow significantly. And Goldman’s entry should accelerate the plans of other big banks to offer Bitcoin services.

At the very end of 2020, the CME‘s bitcoin futures were issued and posted a new high at $1.47 billion in open interest

Not only that, but the Chicago Mercantile Exchange (CME), a Chicago-based exchange specializing in derivative products, also launched new Ethereum futures last month.

Eleonora Spagnolo

Journalist passionate about the web and the digital world. She graduated with honours in Multimedia Publishing at the University La Sapienza in Rome and completed a master's degree in Web and Social Media Marketing.

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