Goldman Sachs has seen a significant resurgence in client interest in cryptocurrencies this year, largely fueled by the U.S. approval of spot Bitcoin exchange-traded funds (ETFs).
According to Max Minton, the head of digital assets for Goldman Asia Pacific, a notable shift has occurred among the firm’s clientele, ranging from renewed activity to explorations into the crypto space.
This shift was detailed in a Bloomberg report dated March 24, highlighting the influence of the recent approval of ten Bitcoin ETFs in January on the traditional market’s embrace of cryptocurrencies.
Minton attributes this revived enthusiasm directly to the ETF approvals, stating, “The recent ETF approval has triggered a resurgence of interest and activities from our clients.”
He observed that the primary interest comes from existing Goldman clients, particularly through options and futures in the crypto domain, with hedge funds being the most engaged segment.
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Despite not offering spot crypto products and focusing on crypto derivatives like Bitcoin and Ether options and futures since launching its first crypto trading desk in 2021, Goldman Sachs reported a record $2.8 trillion in assets under management by the end of 2023.
Minton noted a quiet previous year but mentioned an uptick in client interest and activities, including onboarding and transactions, from the beginning of the year.
Clients of Goldman Sachs are leveraging derivatives to tap into the volatility of the cryptocurrency market and to speculate on future price movements.
Bitcoin-related derivatives have emerged as particularly popular among the firm’s active investors.
Furthermore, Minton speculated on the potential impact that the approval of a spot Ether ETF in the U.S. could have, potentially drawing institutional clients towards Ether, although Bloomberg ETF analysts currently estimate only a 35% chance of such an approval by May.
Despite regulatory challenges, Minton emphasized Goldman’s intention to broaden its client base to include asset management funds, banks, and specialized crypto asset firms, signaling a strategic expansion into the crypto market irrespective of immediate ETF developments.
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