Investment bank Goldman Sachs has reportedly begun offering a bitcoin investment product to clients. The firm has opened up trading with non-deliverable forwards, a bitcoin derivatives product. To hedge against the cryptocurrencyâ€™s volatility, Goldman Sachs will trade bitcoin futures on CME Group.
Goldman Sachs Begins Offering Bitcoin Product to Clients
Investment bank Goldman Sachs â€œhas opened up trading with non-deliverable forwards, a derivative tied to bitcoinâ€™s price that pays out in cash,â€ Bloomberg reported Thursday.
The firm is protecting itself from bitcoinâ€™s volatility by buying and selling bitcoin futures in block trades on CME Group Inc., using Cumberland DRW as its trading partner, the publication conveyed. The investment bank recently brought back its bitcoin trading desk and revealed in March that it plans to offer a full spectrum of bitcoin investment products.
Goldman Sachsâ€™ Asia Pacific head of digital assets, Max Minton, explained that the firmâ€™s new bitcoin offering is â€œpaving the way for us to evolve our nascent cash-settled cryptocurrency capabilities.â€ He was quoted as saying:
Cumberland DRWâ€™s global head of business development, Justin Chow, said that â€œGoldman Sachs serves as a bellwether of how sophisticated, institutional investors approach shifts in the market,â€ elaborating:
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