Goldman Sachs Officially Reveals Its Plans For Crypto Trading Desk.

Goldman Sachs Officially Reveals Its Plans For Crypto Trading Desk.

2021-03-08 | Mike Hallen

Goldman Sachs Officially Reveals Its Plans For Crypto Trading Desk.

Leading American banking Goldman Sachs has officially revealed its plans to revive a crypto trading desk amid hike demand from investors. Matt McDermott, global head of digital assets for Goldman Sachs' global markets division, announced that the firm will offer access to CME Bitcoin [BTC] futures on its upcoming crypto platform. During a Friday Exchanges at Goldman Sachs podcast, the chief also outlined that Goldman Sachs will offer cryptocurrency services with non-deliverable forwards, or NDFs, which are cash-settled, and typically short-term, forward contracts. McDermott noted that originally Goldman Sachs’ crypto platform are going to be limited to those two products, stating:
“We’re actually going accept that cryptocurrency trading desk, which might be quite narrow initially, but we'll specialise in CME futures and non-deliverable forwards. And we’re also now disseminating Bitcoin content to our institutional clients via our Marquee platform.”
In line with McDermott, Goldman Sachs’ enter cryptocurrency comes in response to the increasing demand from its clients. Citing an indoor survey of nearly 300 clients, the chief added that 40% of Goldman Sachs’ investors presently have exposure to crypto. “That seemed actually a touch high to me, but I felt that was over very reflective of the demand we’ve seen over the last three to 6 months,” he added. The executive also outlined that 61% of Goldman Sachs’ surveyed clients expect virtual-asset holdings to extend over subsequent year. Particularly, 76% of these surveyed see Bitcoin ending 2021 between $40k and $100k, McDermott added. Moreover, only 22% expect Bitcoin to surpass the $100k benchmark by the end of this year, he outlined. Goldman Sachs originally wanted to line up a cryptocurrency trading desk in 2018, announcing the plan in late 2017. At the reporting time, Bitcoin was sitting at its former all-time high levels after hitting $20k earlier in December 2017. Following a subsequent sell-off on cryptocurrency markets in 2018, Goldman Sachs was rumored to possess cancelled its cryptocurrency desk plans. Eventually, Goldman Sachs CEO David Solomon strongly refuted that the bank ever had plans to open a cryptocurrency trading desk earlier in 2019. Within the latest interview, McDermott acknowledged that the prevailing crypto landscape is extremely much different than 2017 in terms of growing institutional demand. “2017 was considerably a retail-driven market. At this point around, we’ve seen an enormous volume of institutional demand across a broad spectrum of various industry types,” he explained.

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