Investment bank Goldman Sachs intends to enter the ethereum derivatives market after accepting bitcoin earlier this year. The Wall Street giant plans to offer ethereum options and futures trading services “in the next few months,” an executive told Bloomberg.
This is probably another “real” Goldman Sachs site. Less than four months ago, Goldman Sachs announced that it would relaunch its cryptocurrency trading desk to support bitcoin futures trading again.
Crypto futures contracts are transactions that allow people to buy cryptocurrencies at a specified date in the future, with buyers and sellers betting on the future price of the crypto asset. For example, if you think the price of ethereum will rise, buying futures at today’s price of $2,560 could bring you a profit.
Because of the difference between the contract price at the time of signing and the actual market price at a given future date, futures contracts offer investors the opportunity to bet on them. According to market analysis firm Skew, the daily trading volume of the ethereum futures market reached $23.9 billion.
Similarly, options contracts give traders the opportunity – but not the obligation, unlike futures contracts – to buy cryptocurrencies at a fixed price, and the expiration date of options contracts is usually close to the last Friday of the month. A “call option” is the right to buy, while a “sell” option is the right to sell. According to Skew, the daily trading volume of the ethereum options market is $6.1 billion.
Goldman Sachs’ entry into the ETH options and futures game will add liquidity to the market, which is good news for current traders.
Goldman Sachs’ move could also be seen as good news for clients who aren’t spooked by the current downturn and an uncertain future for cryptocurrencies, and there are plenty of such people, said Mathew McDermott, head of digital assets at Goldman Sachs.
McDermott cited a survey of 850 institutions last week in which nearly 10 percent of respondents said they were trading cryptocurrencies and 20 percent were interested in entering the market.
Mathew McDermott told Bloomberg, “We’ve actually seen an increase in interest from clients who are eager to trade as they find the current market levels a slightly more favorable entry point. We see it as a clean-up activity to reduce some of the excess and leverage in the market, particularly from a retail perspective.”
Last year, Goldman Sachs did not yet consider bitcoin a legitimate asset class. A new research report from May of this year shows that the bank has taken a deeper look at crypto and has changed its previous stance. It called bitcoin an “investable asset” with “its own particular risks, in part because it is still relatively new and in the adoption phase.
In March, Goldman Sachs filed an application with the SEC for an investment product that could give clients indirect exposure to bitcoin and would track the ARK Innovation ETF, which has a large investment in the Grayscale Bitcoin Trust.
However, earlier this month, Jeff Currie, head of commodities at Goldman Sachs, said he considers bitcoin to be “digital copper” because it has similar volatility and similar risk characteristics, making it unsuitable for safe capital preservation.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/the-real-scene-goldman-sachs-to-offer-ethereum-futures-and-options-trading-in-the-coming-months/
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