Goldman Sach, to be the first financial institution to trade Bitcoin futures contracts for clients
Bank seems to be influenced by BitMEX
Goldman Sach decides to help institutional investors to trade through Bitcoin Futures from its New York desk.
After the resignation of its former Vice-President Chris Matta from the institution for the sake of cryptocurrency. Goldman tries to gain confidence on Bitcoin futures even though its perspective on cryptocurrency remains sketchy, said Goldman executive Rana Yared.
“It resonates with us when a client says, ‘I want to hold Bitcoin or Bitcoin futures because I think it is an alternate store of value,’” she told the New York Times.
What this means is that the Goldman Sachs has become the first financial institution to help clients trade Bitcoin futures thorough one of its New York desks. according to Forbes.
For the time being, the bank is not into directly trading with Bitcoin. Rather, it will initiate to trade Bitcoin futures contracts with clients using its own funds, along with non-deliverable forward futures.
Such a huge endorsement from the titan of Wall Street will not only boost confidence on Bitcoin but also on the cryptocurrency market as a whole.
eToro’s Mati Greenspan’s Prediction
The inclusion of investment funds into the cryptocurrency markets was witnessed after the eToro senior analyst Mati Greenspain predicted an inflow of Wall Street investment into the crypto space. He specifically mentioned, institutional investors being more eager to invest after missing the boat last year.
So they were trying hard to catch that bull run, and it seems they did miss the party. November was a very interesting time […] I imagine that the clients in the Wall Street banks also wanted to get in on that party.
“Whether they’re going to go full-on bull or full-on bear we don’t know, but the important thing is that they’re ready to take on and ready to inject new liquidity into this market — which at least should even things out and stabilize the price,” explained Greenspan.
BitMEX Takes a Lead
A cryptocurrency derivative exchange, which already deals in Bitcoin futures market much before Goldman Sachs entrance is BitMEX.
They have been offering derivative products to retail investors.
As noted by Forbes, BitMEX has a daily trading volume upwards of $ 3million and revealed a revenue of $83 million in 2017.
Infact, BitMEX declared a revenue generation of $21 million in the month of January, when the crypto market experienced significance correction. Arthur Hayes, the company’s CEO said:
This is the best thing you could ever have. We make more money when the market goes down. We love this volatility.
What do you think about the entrance of Goldman Sachs in Bitcoin futures? Will this impact crypto space in any manner? Comment what you think about it