Goldman Sachs hedge fund clients are piling back into crypto this year

Goldman Sachs’ clients have reportedly started to make the jump back into crypto this year, with appetite renewed by the approval of spot Bitcoin
BTC

tickers down exchange-traded funds.

Max Minton, head of digital assets for Goldman Asia Pacific, said that many of his firm’s largest clients had recently become active or were “exploring getting active” in the crypto sector, according to a March 24 report from Bloomberg.

Minton added that much of the increased appetite for cryptocurrency stems from the approval of ten new Bitcoin ETFs in the United States in January, which rubber-stamped the crypto assets as being a more integral part of traditional markets.

Minton explained that the bulk of the fresh demand comes primarily from Goldman’s existing clients by way of his firm’s options and futures offerings, with hedge funds being the most involved of its clients.

Goldman Sachs reported a record $2.8 trillion in assets under management at the end of 2023.

Notably, Goldman currently does not offer any spot crypto products to its clients, despite having launched its first crypto trading desk in 2021. The desk only provides exposure to crypto derivatives, including Bitcoin and Ether options and futures.

“It was a quieter year last year, but we’ve seen a pickup in interest from clients in onboarding, pipeline, and volume since the start of the year,” Minton said.

Minton said that Goldman’s clients were primarily using their derivatives to gain exposure to the volatility of crypto as well as making weighted predictions on where prices were headed in the mid-term.

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Mar-25-2024 08:25:30 AM