Source: Golden Ten Data
Minton, Asia Pacific Head of Digital Assets at Goldman Sachs said, “We are seeing a rekindling of customer interest...”
Not only are YOLO (You Only Live Once) retail investors around the world returning to the cryptocurrency market, Goldman Sachs hedge fund clients are also active in this market.
Max Minton, head of Goldman Sachs Digital Assets Asia Pacific, said in an interview: “The recent approval of the ETF has triggered our clients' interest in cryptocurrencies. Many of our biggest customers are already active in this field or are exploring it.”
Goldman Sachs launched its cryptocurrency trading platform in 2021. Currently, in addition to providing CME-listed Bitcoin futures and Ethereum futures, it also provides cash-settled Bitcoin options and Ethereum options trading. However, the bank is not trading the underlying cryptocurrency.
Minton said, “Last year was relatively calm, but since the beginning of this year, we have seen a revival of customer interest, including an upward trend in the number of new customers, activity in the transaction process, and overall transaction size. ”
Minton explained that most of the new demand comes mainly from Goldman Sachs's existing customers, who participate in the cryptocurrency market through the company's options and futures products, with hedge funds being the most involved among its clients.
According to him, clients are using crypto derivatives to make directional bets, increase yields, and hedge risks.
Although currently the focus of clients' attention is still mainly on financial products related to Bitcoin, he pointed out that if the US approves an Ethereum ETF, then customer interest in Ethereum-related products may change.
However, foreign media ETF analysts believe that by May, there is only a 35% chance that an Ethereum ETF will be approved, and the US Securities and Exchange Commission (SEC)'s long-term “silence” on potential fund issuers is increasingly viewed as a sign of rejection.
Minton added that regardless of whether the ETF is approved, Goldman Sachs will seek to expand its “broader customer base” to include asset management funds, banks, and more specialized crypto asset firms.
In addition to the trading business, Goldman Sachs is also using blockchain technology to tokenize traditional assets. The bank launched a digital asset platform called GS DAP, which has been used by the European Investment Bank and the Hong Kong Monetary Authority to issue bonds. Goldman Sachs also recently participated in a pilot test of a blockchain network connecting banks, asset managers, and exchanges.
Additionally, Goldman Sachs has invested in startups that may be strategically important for the development of the digital asset market structure, mainly blockchain infrastructure companies.
“We have a range of portfolios and will invest when it is strategically appropriate,” Minton said.
edit/lambor