As part of its continuous efforts towards helping institutions to trade digital-currency derivatives, Wall Street banking giant Goldman Sachs is considering offering over-the-counter (OTC) bilateral crypto options, according to a Bloomberg report.
Bilateral Crypto Option
Basically, bilateral crypto options allows trades to be customized in such a way that crypto holders like hedge funds and Bitcoin miners can hedge risks and improve yields. However, the crypto options market remains largely unexplored and in its early stages. And with big names like Genesis Global Trading Ltd. and Galaxy Digital Holdings Ltd. already dominating the market, Goldman may soon become one of the first Wall Street giants to offer a wider range of crypto derivatives to institutional clients.
Recall also that Goldman Sachs already has some experience when it comes to offering crypto derivative products. The firm has been offering BTC and ETH futures and options since the last year.
Meanwhile, the news came in on the same day that the Biden administration finally signed the long-awaited executive order on cryptocurrencies. And as it turns out, the executive order has taken a not-so-difficult stand on crypto assets. Therefore, it is only expected that the bank sees an increased demand for crypto derivative-type hedging.
Goldman Sachs Adds ETH Funds Offer Got Institutional Clients
Additional news reports also suggest that Goldman Sachs has filed with the U.S. Securities and Exchange Commission (SEC) to offer Ether (ETH) funds to institutional clients via Galaxy Digital. According to the SEC filing, “Goldman Sachs & Co. LLC will receive an introduction fee” for offering the ETH funds to clients.
Since its start, the Galaxy Institutional Ethereum Fund has sold well over $50 million to more than 28 institutional clients. And the minimum investment for the fund is presently pegged at $250,000.
Without doubt, the seemingly soft undertone of the recently signed executive order on crypto will encourage institutional players to join the crypto space. It might therefore be safe to say that one can expect more institutional adoption and involvement in crypto moving forward.