Goldman Sachs’ Crypto Comeback
In a move that has crypto enthusiasts buzzing, Goldman Sachs has officially announced its plans to resurrect a cryptocurrency trading desk. After a few years of playing coy, the American banking titan is finally embracing the digital currency revolution. Matt McDermott, the bank’s global head of digital assets, took to the airwaves during a recent Exchanges at Goldman Sachs podcast to share the juicy details.
CME Bitcoin Futures and NDFs: The Initial Offerings
Starting small and strategic, Goldman Sachs will initially focus on two primary products: CME Bitcoin (BTC) futures and cash-settled non-deliverable forwards (NDFs). McDermott emphasized, “We’re actually going live with that crypto trading desk, which would be quite narrow initially, but we will focus on CME futures and non-deliverable forwards.” Talk about a focused approach—it’s like a gourmet restaurant that only serves two dishes but nails them both.
Client Demand Driving the Change
Why the sudden shift, you ask? According to McDermott, an internal survey revealed that nearly 40% of Goldman Sachs’ clients already have exposure to crypto. He did admit this statistic surprised him—apparently, 300 investors were more willing to catch crypto fever than he anticipated. But hey, at least they’re not alone in their digital currency dreams; a whopping 61% expect to increase their digital-asset holdings in the next year.
Bitcoin Price Predictions Galore
Feeling optimistic? Well, you should! McDermott shared that 76% of those surveyed believe Bitcoin will land somewhere between $40,000 and $100,000 by the end of 2021. Only a daring 22% are brave enough to predict Bitcoin surpassing the $100,000 plateau. Talk about a mixed bag of fortune tellers!
A Look Back: The 2018 Plans
The fact that Goldman Sachs has decided to dip its toes back into crypto trading is intriguing, especially when you consider their previous attempts. Originally planning a trading desk back in 2018, their ambitions were crushed faster than a crypto bubble. After Bitcoin hit its then-all-time-high of $20,000, market sell-offs seemed to rain on their parade. McDermott recalled that back then, CEO David Solomon had denied that they ever intended to open such a desk—so much for solid planning!
Institutional vs Retail: A Paradigm Shift
In an interesting twist, McDermott pointed out that the current landscape is far different from 2017. Now, institutional demand is skyrocketing, moving the needle from retail investors to big players in various industries. The crypto scene is taking a more serious and structured route.
The Future of Goldman Sachs in Crypto
As Goldman Sachs embarks on this renewed journey into cryptocurrency trading, investors and crypto-savvy readers alike are left to ponder its implications. Can they maintain their cool while taking on the volatile world of digital assets? Only time, and maybe a few market fluctuations, will tell!
