Goldman Sachs has reportedly started offering new bitcoin derivatives to investors to further accelerate its push into the $1 trillion bitcoin market.
The investment giant is now allowing investors to trade with non-deliverable forwards, a derivative linked to bitcoin’s price that is expendable in cash, Bloomberg reported.
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By GlobalDataIn a bid to protect itself from the volatility of cryptocurrency, the bank is buying and selling bitcoin futures in block trades on CME Group with Cumberland DRW as its trading partner, the report said.
Goldman Asia-Pacific head of digital assets Max Minton told Bloomberg: “Institutional demand continues to grow significantly in this space and being able to work with partners like Cumberland will help us expand our capabilities.”
He also added that new offering is paving the way for the firm to evolve its nascent cash-settled crypto-currency capabilities.
Last month, CNBC reported that Goldman is gearing up to offer investments in bitcoin and other digital assets to the wealthy clients of its private wealth management group.
The report which cited Mary Rich, the newly appointed digital asset head for Goldman’s private wealth management division, said the lender will launch its first investment vehicles for digital assets in the second quarter of the year.
The bank’s recent tie-up with Cumberland shows its willingness to collaborate with third party firms to help its clients invest in crypto, sources familiar with the matter told Bloomberg.
It may next offer hedge fund clients exchange-traded notes based on bitcoin or access to the Grayscale Bitcoin Trust, according to one of the sources.
In March this year, it was reported that Morgan Stanley is set to offer bitcoin fund for its wealth management clients.