New York banking giant Goldman Sachs is quietly onboarding clients for its new Bitcoin derivatives product. Representatives from the firm report that despite excitement in the cryptocurrency community for the new rollout, Goldman is in no rush to push additional cryptos like Ether into market. Nevertheless, this potentially marks an important moment, as Goldman has long been considered one of the major financial institutions whose involvement in crypto could inspire the next market boom.
Goldman Sachs’ Bitcoin Derivatives Market
While Goldman has yet to officially launch its Bitcoin derivatives trading facility, The Block reports that the bank has already signed up a “small number of clients.” Bitcoin derivatives are currently available on several regulated US trading exchanges, including Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBOE). Both these firms currently offer cash-settled Bitcoin futures contracts, and CBOE has publicly expressed the desire to remain a leader in the cryptocurrency derivatives marketplace. CCN reports that CME has become “less-than-enthusastic” about the crypto industry, shortly after the exchange launched an Ether price reference rate.
Other players in the market include LedgerX and crypto startup Baakt. LedgerX currently offers a wide range of crypto products, and is reportedly building support for Ether markets as well, pending approval from the Commodity Futures Trading Commission. Meanwhile, Baakt is scheduled to launch its first Bitcoin futures product on December 12th of this year. The startup is headed by the owner of the New York Stock Exchange (NYSE) and has made key partnerships with massive companies like Microsoft and Starbucks. CCN reports that unlike the CME and CBOE, Baakt’s Bitcoin product will be physically-settled when contracts expire.
It appears that Goldman is largely set on testing the waters before pushing any other cryptocurrency products. A source from the firm said that Goldman’s clients are not necessarily looking for new products, but this doesn’t mean they aren’t interested in the market. The source added that customers are regularly calling senior bankers seeking advice on where the crypto market is going and how they can get involved.
In contrast, Larry Fink, the CEO of $6 trillion asset-manager BlackRock, recently said in July that not a single one of the firm’s clients have expressed interest in Bitcoin markets.
“I don’t believe any client has sought out crypto exposure,” Fink said. “I’ve not heard from one client who says, ‘I need to be in this.’”
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