Goldman Sachs Clients Seduced By The Crypto Market

After a quieter 2023, institutional clients of Goldman Sachs’ Asia-Pacific branch are showing renewed interest in bitcoin, Ether and other cryptos in 2024.

Bitcoin spot ETF approval a catalyst for institutional interest

The appetite of Goldman Sachs for cryptos has been rekindled this year, mainly due to the approval of new Bitcoin ETFs in the US in January.

This decision confirmed that cryptos are now an integral part of traditional markets.

Max Mintonin charge of digital assets for Goldman Asia Pacific said that many of his company’s major customers had recently become active or were planning to become active in this sector.

Most of the new demand comes from existing customers of Goldman, in particular hedge funds, which are interested in the options and futures offered by the company.

Although Goldman Sachs currently offers no spot crypto products to its clients, its crypto trading desk, launched in 2021, offers exposure to crypto derivatives, including options and futures on bitcoin and Ether.

A preference for Bitcoin and prospects for Ether

According to M. Mintonbitcoin-linked products are the most popular investment vehicles among active customers. They mainly use these derivatives to gain exposure to crypto volatility and make weighted forecasts of medium-term price trends.

However, the potential approval of a Ether spot ETF in the U.S. could bring Goldman Sachs towards Ether. Although the chances of such an ETF being approved by May 2024 are estimated at just 35% by ETF analysts at Bloomberg. This is due to the prolonged silence of Securities and Exchange Commission (SEC) on the subject.

Goldman Sachs’ institutional clients’ renewed interest in Bitcoin in 2024 marks a turning point in the adoption of these assets by major financial players. With $2.8 trillion in assets under management at the end of 2023, Goldman Sachs is looking to expand to a broader universe of clients, including asset management funds, banks, and companies more specialized in crypto assets.