This trading desk is part of Goldman’s activities in the emerging digital asset sector. A sector that already entails many blockchain-based projects along with other central bank digital currencies.
Not only that, but the report also speaks of an exploration by the banking giant of a potential bitcoin exchange-traded fund. In this regard, Goldman has already issued a request for information to explore the custody of digital assets.
This return to the world of crypto through the trading desk, comes at a time when interest in bitcoin is skyrocketing. Especially from institutions that, after the 470% increase in the last year recorded by the crypto queen, have questioned whether they should be entering the market to hedge against inflation.
Goldman Sachs is riding the crypto-friendly trend
This is not the first time the banking giant has explored and moved into the crypto world. Notably, Goldman’s crypto trading desk with its NDFs – futures contracts without the option of delivery – had already been established in 2018.
The problem, at that time, was the declining interest or a bearish trend towards the queen of cryptocurrencies which had recorded a continuous decline since its ATH – all-time high of December 2017.
This bullish trend becomes attractive for bitcoin’s involvement in traditional trading as well, with investors eager to take riskier positions chasing yield with low-interest rates.
At the very end of 2020, the CME‘s bitcoin futures were issued and posted a new high at $1.47 billion in open interest.
Not only that, but the Chicago Mercantile Exchange (CME), a Chicago-based exchange specializing in derivative products, also launched new Ethereum futures last month.