Goldman Sachs Group Inc., an American investment bank, is expanding its crypto offering by expanding into Ethereum (ETH). A report unveiled this news on June 14, noting that the bank intends to offer ETH-based futures and options trading. In so doing, the bank will give its crypto clients an alternative to the already existing Bitcoin (BTC) offering. Reportedly, these products are set to become available in the next few months.
According to the report, this is the latest crypto development by the bank after it relaunched a trading desk earlier this year to let its clients publicly trade in the BTC future. Matthew McDermott, the Head of Digital Assets at Goldman Sachs, said the bank also aims to enable trades through exchange-traded notes that track BTC.
Explaining the decision to expand its crypto offering, McDermott said Goldman Sachs had seen a lot of interest from clients that are keen on trading cryptocurrencies because they consider the coins easy to deal with. He went on to the expansion is some sort of cleansing exercise that helps minimize the leverage in the system, especially from a retail point of view.
A bullish outlook on crypto despite increasing concerns
This news comes as Goldman Sachs’s interest in crypto continues increasing despite global regulators clamping down on the sector. Before this, the bank invested $5 million in Blockdaemon, a startup that develops and hosts computer nodes that form the blockchain. Apart from this, the bank spearheaded a $15 million investment into Coin Metrics, a crypto and blockchain data provider. McDermott joined the firm’s board.
According to him, Goldman Sachs is looking to team up with multiple companies that share its strategic direction. He added that his talks with clients show cryptocurrencies are not just a fleeting craze. After conducting a survey that interviewed 850 institutions, Goldman Sachs found that almost one out of 10 are trading cryptocurrencies and that 20% of the organizations are interested in crypto.
Unfazed by BTC’s recent price correction, McDermott said that institutional adoption would continue. He went on to say that despite BTC’s correction, the bank is still seeing vast interest in cryptocurrencies. This statement is in direct contradiction to the sentiments of JP Morgan’s analysts, who said BTC is set to enter into a bear market. Per the analysts, institutional investors are losing interest in crypto.
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