Cryptocurrencies like Bitcoin and Ether are attracting the attention of Goldman Sachs’ Asia Pacific institutional customers once again.
The green light for spot Bitcoin exchange-traded funds renewed the interest of Goldman Sachs’ customers, who have reportedly begun to return to crypto this year.
Bloomberg reported on March 24 that Max Minton, head of digital assets for Goldman Asia Pacific, said that several of his company’s biggest customers were either actively involved in the cryptocurrency market or were “exploring being active” in the space.
Minton further said that the government’s January approval of ten new Bitcoin ETFs solidified the crypto assets’ position as an important component of regular markets and contributed significantly to the market’s growing interest for cryptocurrencies.
Minton explained that current customers of Goldman’s, particularly hedge funds, are the primary source of new demand via the firm’s options and futures products.
At the close of 2023, Goldman Sachs announced that its assets under management reached a new record high of $2.8 trillion.
Despite launching its first crypto trading desk in 2021, Goldman does not presently provide customers with spot crypto products. This desk only deals in cryptocurrency derivatives, such as futures and options on Bitcoin and Ethereum.
Although last year was less busy, Minton said that customer interest in onboarding, pipeline, and volume has increased since the beginning of the year.
According to Minton, the main reason Goldman’s customers were employing derivatives was to obtain exposure to the volatility of cryptocurrency and to make weighted forecasts about the mid-term price direction.
According to Minton, among active customers, Bitcoin-related products were the most popular investment vehicles.
Another factor that Minton considered was the possibility of a spot Ether ETF being approved in the US, which may sway his firm’s institutional customers to adopt Ether.
Bloomberg ETF experts, meanwhile, see the odds of an Ether ETF approval by May at a dismal 35%, with the SEC’s protracted “radio silence” to would-be fund issuers perceived as more and more negative.
No matter what happens with an ETF approval, Minton said, Goldman will keep looking to grow by taking on “a larger universe of customers,” including as banks, asset management companies, and other crypto asset enterprises.
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