LONDON (Reuters) – Goldman Sachs Group Inc has restarted its cryptocurrency trading desk and will begin dealing with bitcoin futures and beyond that cannot be delivered for clients from next week, an expert said on the case.
The team will sit within the U.S. market’s Global Markets division, the man said.
The desk is part of Goldman’s activity within a fast-growing digital asset sector, which also includes projects incorporating blockchain technology and central bank digital currencies, the person said. .
As part of this work, the bank is also exploring the potential for bitcoin exchange trading funds and has issued a request for information to investigate the seizure of digital assets, the source said.
The resurgence of the trading desk comes amid growing interest by institutions in bitcoin, which has risen more than 470% over the past year. The largest cryptocurrency is seen by investors and some companies as a hedge against inflation as governments and central banks turn on the stimulus taps.
Although its price has risen sharply over the past year, bitcoin is still highly volatile. The real money broke through $ 58,000 on Feb. 21 and fell back as much as 25% but has lost some of its ground.
This makes the base and the associated side effects attractive to investors who are willing to take long or short risk positions while hunting for a return in a minimum interest rate environment.
Undeliverable advances are a kind of derivative that allows investors to consider the future price of bitcoin.
Goldman first set up a cryptocurrency desk in 2018, just as the price of bitcoin was falling from the highs, taking away investor interest in digital coins.
Since then, the market infrastructure for bitcoin and other major cryptocurrencies has grown significantly, with many established financial institutions offering products and services, including CME Group Inc., Intercontinental Exchange Inc. and Fidelity.
The developments have helped attract more mainstream companies to the sector, from those offering crypto services to retail or institutional investors, to companies that choose to keep bitcoin on their balance sheets.
Last month, electric car maker Tesla Inc said it had bought $ 1.5 billion worth of bitcoin, and Bank of New York Mellon Corp. said it had created a new unit to help clients acquire digital assets hold and move.
Reporting by Anna Irrera, John Withers and Lawrence White in London. Edited by Rachel Armstrong and Jane Merriman