The Wall Street giant already offers its wealthiest clients the option to invest in certain cryptocurrencies and now looks to offer over-the-counter (OTC) crypto options. According to people familiar with the matter, Goldman Sachs Group is reportedly looking to expand its crypto-related services by offering binary crypto options to its clients.
Under binary options, clients who are crypto-like hedge funds or Bitcoin miners will be able to customize their trades to hedge risk or increase returns. Andrei Kazantsev, Goldman’s head of global crypto trading, said in December that there was a lot of demand for derivatives hedging and developing an options market would be the next step for that.
The Wall Street giant’s interest in the crypto industry has been growing since it relaunched its cryptocurrency trading desk in March 2021 after a three-year hiatus. Unlike most of its peers, the firm has made multiple moves to get involved in the crypto industry.
Partnership with Galaxy Digital
According to a March 9 SEC filing, Goldman Sachs will also begin offering crypto-savvy customers access to an Ethereum fund through Galaxy Digital. Galaxy Digital is an investment firm led by Mike Novogratz.
On the other hand, Goldman Sachs thinks that Bitcoin will rise. Earlier in January, an analyst at the bank said that Bitcoin could potentially compete with gold as a store of value and begin to surpass its market share. Goldman said that if the market share rises to 50%, it could push the price of Bitcoin to $100,000.
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