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Bitcoin News

Goldman Sachs Announces Ethereum Futures

The multinational US bank Goldman Sachs Group Inc. plans to offer Ethereum (ETH) futures trading, Mathew McDermott, the company’s global head of digital assets, told Bloomberg. Futures are financial instruments that allow traders to bet on the price movements of underlying assets (usually with “leverage”) without having to hold that asset. This helps to avoid the many problems related to custody and regulation, especially in the cryptocurrency market.

About a year after denouncing cryptocurrencies as a non-asset class, the US multinational investment bank and financial services company opened up to Bitcoin (BTC) and is currently delving deeper into the Ethereum ecosystem.

In May, the company launched a trading desk that helps clients trade exchange-traded futures tied to Bitcoin, and in the following months, the bank plans to offer options and futures trading in Ethereum, according to McDermott, who helped shape the company’s crypto ambitions.

We’ve actually seen a lot of interest from customers eager to trade as they find these levels to be a slightly tastier entry point, McDermott said.

He added:

“We see it as a purge to reduce some of the leverage and excess in the system, especially from the perspective of retail investors.“

Ethereum arouses the interest of customers

In May, Goldman led a $ 15 million investment in Coin Metrics, a provider of crypto and blockchain data and analytics, and McDermott joined the company’s board.

“We are looking at a number of different companies that fit in our strategic direction,” the head of crypto efforts said regarding their latest Ethereum-driven plans, adding that his communication with clients reveals their crypto ambitions:

“Despite the significant price correction, we continue to see great interest in this space.“

In a survey of 850 institutions last week, Goldman Sachs found that nearly 10% trade crypto and one in five are interested. As more and more investors discover the lucrative opportunities in the crypto space, less and less invest their money in centralized banks, which worries them and seems to be slowly driving development.

As McDermott said: “Institutional adoption will continue.“

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