According to persons familiar with the topic, Goldman Sachs is considering expanding its crypto-related services by offering clients bilateral crypto options.
Clients who own crypto-like hedge funds or bitcoin miners will be able to modify their trades to hedge risks or improve yields under the bilateral options. According to Andrei Kazantsev, Goldman’s global head of crypto trading, there is a lot of demand for derivative-type hedging, and building an options market is the next step.
Since relaunching its cryptocurrency trading department in March 2021 after a three-year break, the Wall Street behemoth’s interest in the space has grown.
Unlike most of its competitors, the lender has made several steps to grow into the crypto market.
According to a March 9th SEC filing, Goldman Sachs will begin offering crypto-curious clients access to an Ethereum fund through Galaxy Digital. In a similar agreement, Galaxy Digital offers a Bitcoin fund to Morgan Stanley clients.
For the larger part of the last year, Goldman Sachs has been positive on Bitcoin. In early January, a bank expert predicted that Bitcoin will begin to compete with gold as a store of value, eroding its market share.
According to the lender, Bitcoin presently enjoys a 20% share of the “store of value” market, which also includes gold.
According to Goldman, if Bitcoin’s market share rises to roughly 50%, the price might reach $100,000.
On the other hand, the lender is among many who are apprehensive about the speed with which traditional banking is moving into crypto in various regions of the world. Despite the increasing interest in cryptocurrency, most large institutions are still wary of dipping more than their toes in the water due to the volatile nature of the market and the lack of regulatory protection.