Goldman Sachs to offer Bitcoin futures trading in partnership with Galaxy Digital
While Goldman Sachs had been exploring Bitcoin futures trading in the past, today the bank is formally announcing that it will be offering such trading on the Commodity Futures Trading Commission’s upcoming regulated Bitcoin futures exchange. The new exchange is expected to be launched later this year by a British cryptocurrency platform called Galaxy Digital. The move is significant for crypto traders, who have been waiting for an exchange to come along that would offer Bitcoin futures trading and simplify their trading experience.
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Last week, Goldman Sachs announced that it would begin trading futures contracts on Bitcoin, the world’s largest cryptocurrency by market value, in a partnership with Galaxy Digital, a startup backed by Galaxy Entertainment Group, the owner of the Galaxy Note smartphone brand.
Goldman Sachs has joined forces with crypto-currency investment giant Galaxy Digital to offer its customers a bitcoin (BTC) futures trading product. According to CNBC, this is the first time a Wall Street bank has partnered with a provider of liquidity based on digital assets. Damien Vanderwilt, co-president of Galaxy Digital, said the company provides a gateway into the crypto space that allows a highly regulated organization like Goldman to offer cryptocurrency-related investment products. Goldman is reportedly offering CME Group bitcoin futures to its clients, marking a further expansion of its newly formed crypto-currency trading division. The move follows the bank’s announcement to launch Ether (ETH) futures and options. According to Vanderwilt, Goldman’s proposal to trade BTC futures will help attract more institutional investors into the crypto investment space, which the Galaxy manager says will help reduce price volatility. Vanderwilt also noted that this initiative will serve as an example to other Wall Street banks that cryptocurrencies can be affordable. As previously reported by Cointelegraph, demand for cryptocurrencies is increasing on Wall Street, with some banks recently announcing plans to set up trading departments for the new asset class. Related: Analysts at Goldman Sachs are divided on whether bitcoin is an asset class. Max Minton, Goldman Sachs’ head of digital assets for the Asia-Pacific region, said the bitcoin futures offering is part of the bank’s effort to provide access to its customers’ preferred assets: In 2021, this now includes cryptocurrencies, and we are pleased to have found a partner with a wide range of liquidity venues and differentiated derivatives capabilities that span the cryptocurrency ecosystem. Despite the bank’s imminent announcement, some Goldman employees are still reportedly not selling bitcoin as an investable asset class. In early June, the bank’s head of commodities argued that BTC was more of a risky asset like copper than an inflation hedge like gold.