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Per a recent BNN Bloomberg article, the crypto trading space is witnessing a renewed interest, not just from individual “YOLO” traders but also from sophisticated hedge-fund clients associated with Goldman Sachs. According to Max Minton, Goldman Sachs’ Asia Pacific head of digital assets, the recent approval of spot Bitcoin ETFs in the U.S. has catalyzed this resurgence of activities and interest within the bank’s clientele.
BNN Bloomberg’s coverage reveals that Goldman Sachs, having initiated its cryptocurrency trading desk back in 2021, currently offers a range of derivative products, including cash-settled Bitcoin and Ether options, alongside futures listed on the CME. It’s noteworthy, as mentioned in the article, that Goldman does not engage in the trading of the actual cryptocurrency tokens, positioning itself as a bridge between traditional finance mechanisms and the emerging crypto market.
The past year might have been relatively subdued in terms of cryptocurrency engagement, as per insights from Minton shared by BNN Bloomberg, but the onset of 2023 has marked a noticeable uptick in interest. This is evident in the increasing number of clients onboarding, as well as in the growing transaction volumes and pipeline activities observed.
BNN Bloomberg’s report highlights that the bulk of this renewed interest stems from Goldman’s traditional client base, particularly hedge funds. However, Minton indicated an expansion strategy that aims to encompass a broader client spectrum, including asset managers, bank clients, and a select group of digital asset firms, showcasing the bank’s commitment to diversifying its cryptocurrency engagement.
The utility of crypto derivatives, as BNN Bloomberg notes from Minton’s insights, spans directional bets, yield enhancement, and hedging purposes among Goldman’s clients. While Bitcoin-related products dominate client preferences, there’s an openness to expanding into Ether-related offerings, contingent on regulatory approvals for Ether ETFs in the United States.
Beyond trading, Goldman Sachs is pioneering in the digital asset tokenization space, leveraging blockchain technology. BNN Bloomberg mentions Goldman’s introduction of the GS DAP digital-asset platform and its involvement in a pilot blockchain network designed to streamline connections between banks, asset managers, and exchanges.
Furthermore, according to BNN Bloomberg, Goldman Sachs is not just a participant in the digital asset market but also invests in startups that align with its strategic vision, particularly those innovating in blockchain infrastructure.
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