American multinational bank Goldman Sachs Group Inc. plans to offer trading in Ethereum (ETH) futures, said Mathew McDermott, the company’s global head of digital assets Bloomberg.
Futures are financial instruments that allow traders to bet (usually with “leverage”) on the price movements of the underlying assets without the need to hold that asset. This helps avoid the many custody and regulatory issues, especially in the cryptocurrency market.
Goldman’s change of tone
About a year after cryptocurrencies were denounced as a Non-asset class, the US multinational investment bank and financial services company open up to Bitcoin (BTC) and is currently delving deeper into the Ethereum ecosystem.
in the Can the company has restarted a trading desk to help its clients trade publicly traded futures pegged to bitcoin; and iIn the following months, the bank plans to offer options and futures trading in Ethereum, according to McDermott, who helped shape the company’s crypto ambitions.
“We’ve actually seen a lot of interest from customers who like to trade, as they find these levels a slightly tastier entry point,” said McDermott, who was named head of cryptocurrency efforts last year and has been expanding his operations since the crypto team.
He added, “We see it as a cleanup exercise to reduce some of the leverage and excess in the system, especially from a retail perspective.”
Ethereum arouses the interests of customers
In May, Goldman initiated a $ 15 million investment in Coin codes, a provider of cryptocurrency and blockchain data and analytics, and McDermott joined the company’s board of directors.
Goldman Sachs is leading a $ 15 million investment in Coin Metrics.
Read the full press release: https://t.co/IH3euUCih7 pic.twitter.com/nAl2qtDRSC
– CoinMetrics.io (@coinmetrics) May 5, 2021
“We’re looking at a number of different companies that fit into our strategic direction,” said the head of crypto efforts of their latest Ethereum-powered plans, adding that his communications with clients reveal their crypto ambitions:
“Despite the material price correction, we continue to see great interest in this area.”
In a survey of 850 institutions last week, Goldman Sachs found that almost 10% trade crypto and one in five is interested in it.
As more investors discover lucrative opportunities in wasted crypto space, fewer investors are putting their money in centralized banks, which worries them and, apparently, slows theirs evolution.
As McDermott said, “Institutional adoption continues.”
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