Goldman Sachs: In addition to retail investors, hedge funds are also returning to the cryptocurrency market

Zhitong
2024.03.24 23:25
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Retail investors and hedge fund clients of Goldman Sachs are returning to the cryptocurrency market. Goldman Sachs has launched a cryptocurrency trading platform, offering Bitcoin and Ethereum futures as well as cash-settled Bitcoin and Ethereum options trading. The clients mainly consist of traditional hedge funds, but Goldman Sachs is also expanding its client base to include asset management companies, bank clients, and digital asset firms. Clients are using cryptocurrency derivatives for directional bets, yield enhancement, and hedging purposes. Goldman Sachs is also actively tokenizing traditional assets using blockchain technology and investing in blockchain infrastructure companies

According to the Zhitong Finance and Economics APP, "YOLO" (You Only Live Once) retail investors are returning to the cryptocurrency market, as are hedge fund clients of Goldman Sachs. Max Minton, head of digital assets in the Asia-Pacific region at Goldman Sachs, stated: "The recent approval of the AdvisorShares Pure Cannabis ETF has sparked renewed interest and trading activity among our clients." "Many of our large clients are very active or actively exploring this area."

Goldman Sachs launched a cryptocurrency trading platform in 2021, currently offering cash-settled Bitcoin options and Ethereum options trading in addition to Bitcoin and Ethereum futures listed on the Chicago Mercantile Exchange. Goldman Sachs does not trade underlying crypto tokens.

Minton stated: "Last year was relatively quiet, but since the beginning of this year, we have seen an increase in client interest."

Most of the demand comes from existing clients of Goldman Sachs, mainly traditional hedge funds. He mentioned that the bank is also expanding to a "broader range of clients," including asset management companies, bank clients, and digital asset firms.

Clients are using crypto derivatives for directional bets, yield enhancement, and hedging purposes, according to him.

Bitcoin-related products remain the primary focus for clients, but interest in Ethereum-related products may change depending on whether the Ethereum AdvisorShares Pure Cannabis ETF is approved in the United States.

In addition to trading, Goldman Sachs is actively tokenizing traditional assets using blockchain technology. The bank has launched a digital asset platform called GS DAP and recently participated in a pilot test of a blockchain network connecting banks, asset management companies, and exchanges.

Goldman Sachs is also investing in blockchain infrastructure companies.

Minton said: "We have a portfolio, and if it is strategically significant, we will invest."

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