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Feb 26
2019

Goldman Sachs Exploring Crypto Derivatives Said COO

In an interview, the Chief Operating Officer of Goldman Sachs said that Goldman Sachs is an investment banking group which is exploring cryptocurrency trading derivatives.

COO David Solomon said that the company is already assisting clients in publicly-traded derivatives. The company is considering some other activities also very carefully.

The company’s objective is “evolution and adaptation”.

The aim of the company is to evolve its business and adapt to the environment according to the cryptocurrencies.

Goldman Sachs

Solomon claimed that “We are clearing some futures around Bitcoin, talking about doing some other activities there, but it’s going very cautiously.

We’re listening to our clients and trying to help our clients as they’re exploring those things too.”

As digital assets grew more and more popular, Goldman Sachs’ attitude changed towards cryptocurrencies.

In 2014, Goldman Sachs was not ready to accept Bitcoin as a cryptocurrency, but, three years later, the scenario got completely changed, for institutional investors it became more difficult to avoid Bitcoin and other cryptocurrencies.

In fact, in December of last year, there was a rumour that the company itself is opening its own crypto trading desk.

In early 2018, the investment group denied the rumours of a trading desk and the company’s position also got softened towards cryptocurrency.

In May, the company said that crypto is “not fraud” and disclosed their further plans of crypto trading.

According to Fundstrat head of research Thomas Lee, the recent decline in Bitcoin was caused due to futures expirations.

On June 9, the U.S. Commodity Futures Trading Commission (CFTC) requested trading data from crypto exchanges Bitstamp, Coinbase, itBit and Kraken as a part of an investigation into whether the platforms were engaged in activities that could constitute price manipulation when formulating the price of Bitcoin futures.

Company’s Customers and Bitcoin Trading:

Goldman Sachs has always acquired the first position in the world of cryptocurrencies.

But, there is no rush in the firm for trading new products in the market.

The firm announced its crypto trading desk in May. At the time, the bank said that the desk would offer Bitcoin non-deliverable forward contracts. To start, it is a type of derivative.

bitcoin trading

The crypto site, Abacus Journal reported Goldman Sachs as “actively exploring the creation of a non-deliverable forward for ether”.

When it comes to certainty, it is not even clear whether Goldman could even build a product at the current time since futures for ether do not trade in any regulated exchange in US CBOE global markets.

For Goldman Sachs, as per the source, the clients are not really looking for new products.

But, it doesn’t mean that they are not interested in marketing.

They just want a guide, so, they call senior bankers and traders to know about necessary details regarding ripple futures and to learn how to make a move to enter into the market.

“I don’t believe any client has sought out crypto exposure,” Fink said in July. “I’ve not heard from one client who says, ‘I need to be in this.'”

Final words:

So, it was all about how the company “Goldman Sachs” is exploring cryptocurrencies.

Here, we discussed all the necessary details regarding the company’s trade.

We tried our best to give you all the necessary details about the company’s trade and views about cryptocurrencies. If you still have any doubts or queries, just feel free to contact and ask us.

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