Reports suggest Goldman Sachs is now offering Bitcoin derivatives

Published at: May 6, 2021

Investment banking giant Goldman Sachs has reportedly opened up futures trading on Bitcoin to Wall Street executives.

According to Bloomberg Law, last month the investment firm began offering trading with non-deliverable forwards, a derivative tied to the price of Bitcoin (BTC) — roughly $56,000 at the time of publication — for which investors can be paid in fiat. Goldman Sachs reportedly lessens its risk to the crypto asset’s infamous volatility by buying and selling Bitcoin futures in block trades on the Chicago Mercantile Exchange using the crypto trading unit of DRW Holdings, Cumberland.

"Institutional demand continues to grow significantly in this space, and being able to work with partners like Cumberland will help us expand our capabilities," said Goldman’s Asia-Pacific head of digital assets, Max Minton. He added that the offering was paving the way for the company "to evolve our nascent cash-settled crypto-currency capabilities."

Goldman has seemingly been increasing its exposure to the crypto market following price surges in tokens and institutional players like Tesla adopting cryptocurrencies. Rumors persisted that the investment firm planned to set up a cryptocurrency trading desk after first announcing one during the 2017 bull run, which it confirmed in March 2021.

CEO David Solomon hinted in an interview last month that the firm was keeping a close eye on digital currencies amid increasing demand for crypto exposure from Goldman's clients. The investment giant also filed for an ETF in March that includes the option to add exposure to Bitcoin. 

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