Goldman Sachs, the massive US investment bank, embraced Bitcoin (BTC) earlier this year with the reboot of a cryptocurrency trading desk. Now the financial services company is also going to embrace Ethereum (ETH).
Goldman Sachs announces that it will be offering new derivatives, such as options and futures, for ether sometime in the coming months. Bloomberg news agency reported this on June 15:
Despite the recent price drops, interest in crypto among institutional investors continues to rise, said Mathew McDermott, head of digital assets at Goldman Sachs. The bank wants to make their entry into this market easier:
“We've seen a lot of interest from customers eager to trade as they find these levels a slightly more palatable entry point. We see it as a cleansing exercise to reduce some of the leverage and surplus in the system, especially from a retail perspective.”
According to McDermott. McDermott says his conversations with customers show that digital currencies are not simply a fad. In a survey of 850 institutions, Goldman found that nearly one in ten trade with cryptocurrencies, and 20% are interested in them.
“Institutional adoption will continue. Despite the material price correction, we continue to see a significant amount of interest in this sector.”
In addition, Goldman Sachs plans to invest in more crypto companies, says McDermott. Goldman invested $15 million in Coin Metrics last month.
It recently emerged that a bank manager left Goldman Sachs after taking millions from his Dogecoin (DOGE) investment. Coinbase hired a former Goldman Sachs executive as its chief policy officer late last month.
Jeff Currie, head of research at Goldman Sachs, recently said that bitcoin is not “digital gold,” but rather “digital copper.” Yesterday it was revealed that no less than a quarter of all ether is now tied up in smart contracts such as decentralized finance (DeFi) products and Ethereum 2.0.