Goldman Sachs’ hedge fund clients have shown renewed interest in cryptocurrencies due to the recent approval of a spot Bitcoin ETF (exchange-traded fund) investment product.
“The recent ETF approvals have sparked a resurgence in client interest and activity,” Max Minton, head of digital assets for Asia Pacific at Goldman Sachs, told Bloomberg News. “Many of our largest clients are actively participating or considering participating in this space.”
Since Jan. 11, when bitcoin ETFs managed by Wall Street giants including BlackRock and Fidelity received approval, much of the demand has been focused on bitcoin.
Minton said that if a spot Ethereum ETF is approved in May, demand for Ethereum could also rise. However, many analysts believe that this is increasingly unlikely, and Bloomberg Intelligence recently lowered the odds of approval to 25% from 35% previously.
Goldman Sachs said clients such as hedge funds have shown renewed interest in cryptocurrency options trading this year amid a boom in digital asset markets.
Minton said most of the bank’s largest clients are already active in the crypto industry or are exploring it.
“Last year was a relatively quiet year, but we have seen an increase in client interest in onboarding, pipeline and deal volume since the beginning of the year,” he said.
The investment bank launched a cryptocurrency trading desk in 2021, through which it offers cash-settled Bitcoin and Ethereum options trading. It also supports trading in Bitcoin and Ethereum futures listed on the Chicago Mercantile Exchange.
The change in behavior among Goldman Sachs’ hedge fund clients comes as Wall Street increases its stake in the cryptocurrency market.
As Grayscale’s Bitcoin Trust continues to see net outflows, analysts believe BlackRock is on track to become the largest institutional Bitcoin holder within two weeks.
Also read:
Bitcoin Price Prediction: BlackRock Closes in on Grayscale as Green ICO Soars to $9 Million
SEC Investigates Ethereum Status, Bloomberg Lowers Odds of Approving Ethereum ETF in May
Bloomberg Analyst Says Spot Ethereum ETF Won’t Be Approved in May
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