{"id":129359,"date":"2021-06-18T20:03:42","date_gmt":"2021-06-18T20:03:42","guid":{"rendered":"https:\/\/precoinnews.com\/?p=129359"},"modified":"2021-06-18T20:03:42","modified_gmt":"2021-06-18T20:03:42","slug":"goldman-sachs-becomes-first-major-u-s-bank-to-begin-trading-bitcoin-whos-next","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/bitcoin\/goldman-sachs-becomes-first-major-u-s-bank-to-begin-trading-bitcoin-whos-next\/","title":{"rendered":"Goldman Sachs Becomes First Major U.S. Bank To Begin Trading Bitcoin – Who's Next?"},"content":{"rendered":"
Despite bitcoin\u2019s apparent lull after plunging over 30% from its historic high in May, institutional interest in bitcoin is still rising. United States investment bank Goldman Sachs has launched a bitcoin (BTC) futures trading product for its clients in partnership with Mike Novogratz\u2019s crypto merchant bank, Galaxy Digital.<\/p>\n
<\/p>\n
Galaxy Digital will provide liquidity to the bank, according to a report by CNBC<\/em>. Liquidity providers, otherwise known as market makers, scoop up vast amounts of a given asset before selling them to the next interested party. This means that Goldman Sachs\u2019 clients can always purchase bitcoin regardless of the market conditions.<\/p>\n Notably, this is the first the Wall Street giant has teamed up with a crypto-focused liquidity provider since reinstating its cryptocurrency trading desk in March after a three-year break. The bank is now set to offer the Chicago Mercantile (CME) Group Bitcoin Futures to its clients, marking an effort to expand its newly-reopened trading desk.<\/p>\n Goldman Sachs Asia Pacific head of digital assets, Max Minton, observed that the bank is responding to demand from its clients:<\/p>\n \u201cOur goal is to equip our clients with best-execution pricing and secure access to the assets they want to trade. In 2021, this now includes crypto, and we are pleased to have found a partner with a broad range of liquidity venues and differentiated derivatives capabilities spanning the cryptocurrency ecosystem.\u201d<\/em><\/p>\n Galaxy Digital co-president Damien Vanderwilt said the firm is providing a pathway to the cryptoverse, enabling a highly regulated banking institution like Goldman to offer crypto-based investment vehicles. Vanderwilt also noted that Goldman Sachs\u2019 move will likely encourage other major banks to give crypto a shot. And when more banks allow their institutional clients to trade bitcoin, the cryptocurrency\u2019s notorious volatility is bound to decrease.<\/p>\n It’s worth mentioning that Goldman Sachs is also planning to offer ether (ETH) futures and options in the coming months.<\/p>\n Despite the investment bank\u2019s latest move, not everyone at Goldman is sold on digital currencies. Just days ago, Goldman\u2019s Investment Strategy Group released a report titled \u201cDigital Assets: Beauty Is Not in The Eye of the Beholder\u201d<\/em> asserting that cryptocurrencies are not a \u201cviable investment\u201d<\/em> for its clients.<\/p>\n