By
Steve Muchoki
April 17th, 2024
Goldman Sachs executive said that the recent market rout provides a great opportunity to new entrants and its clients are showing greater interest in crypto-based products in recent times.
On Monday, June 14, Wall Street giant Goldman Sachs said that it will proceed ahead with offering Ethereum derivative products in the coming months. Mathew McDermott, head of digital assets at Goldman, informed Bloomberg about its plans.
This decision some just within three months of the banking giant launching its crypto trading desk earlier this year in March 2021. However, Goldman Sachs hasn’t announced any specific date of release for the Ethereum Futures and options. The Goldman executive said that looking at the current market rout, it is a good time to roll out the derivative products.
Currently, the banking giant is already offering public-traded futures tied to Bitcoin (BTC). McDermott noted that Goldman is also planning to facilitate trades via exchange-traded notes tracking Bitcoin and Ether. Despite all the regulatory actions going around, banking giants are stepping up efforts to offer crypto-related products to their clients.
As per Goldman’s survey, 61% of its clients are willing to increase their crypto asset holdings over the next year. In a phone interview with Bloomberg, McDermott said:
“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.”
“Institutional adoption will continue. Despite the material price correction, we continue to see a significant amount of interest in this space,” added he.
Not Just Ethereum: Goldman Sachs Expanding Investment Options in Crypto
Mathew McDermott joined the Goldman board as the head of its digital assets unit last year. The executive has been very much instrumental in expanding Goldman’s footprint in the crypto industry. After McDermott joining, the banking giant has invested in a number of crypto start-ups.
Last month, Goldman was leading the $15 million fundraise in blockchain data provider CoinShares. Previously, it invested $5 million in Blockdaemon, a firm that creates and hosts the computer nodes that make up blockchain networks.
“We are looking at a number of different companies that fit into our strategic direction,” he said. Apart from just Goldman Sachs, other global banks are also dipping their toes into crypto. Standard Chartered recently announced its decision to offer the crypto trading option to customers. Cowen Inc. is also planning to offer institutional-grade custodial services to its clients.