Goldman Sachs is expanding its presence in the cryptocurrency industry just a month after introducing its Bitcoin derivatives product. According to Bloomberg, the financial bank intends to sell Ethereum options and futures in the next months.
In a phone conversation, Goldman’s head of digital assets, Matthew McDermott, allegedly revealed the bank’s objectives. He also stated that the bank intends to facilitate trading through the use of Bitcoin-tracking exchange-traded notes. He elaborated:
We’ve actually seen a lot of interest from clients who are eager to trade as they find these levels as a slightly more palatable entry point. We see it as a cleansing exercise to reduce some of the leverage and the excess in the system, especially from a retail perspective.
McDermott believes that his discussions with clients indicate that cryptocurrencies are not a fleeting craze. He believes that institutional adoption will continue, citing a recent survey done by the bank that revealed that nearly one in every ten organizations (out of the 850 institutions examined) are currently trading cryptos. Meanwhile, around 20% have expressed interest.
Despite the material price correction, we continue to see a significant amount of interest in this space.