Banking giant, Goldman Sachs, in partnership with Mike Novogratz’s Galaxy Digital has begun trading the Chicago Mercantile Exchange (CME) Bitcoin Futures. Goldman Sachs is the first investment bank to set up a Bitcoin trading desk for its clients and for the first time has moved to include a counterparty to its recently established crypto desk.
The financial institution is depending on Galaxy Digital to offer liquidity on traded digital assets. Vanderwilt, a former Goldman partner, noted that the reason for the partnership tilts to the fact that the Bank cannot directly handle Bitcoin. Goldman specifies that it wants to ensure that clients access digital assets of their choice.
Vanderwilt, who was a former Goldman Sachs executive but joined Galaxy Digital last year, has said that the move was towards a vision he wants for the bank. In 2017, the ex Goldman executive was saddled with the responsibility of aiding the institution make its first futures trade on Bitcoin but the arrangement didn’t work out. Nevertheless, this year, he’d be helping his former company make the moves from Galaxy Digital.
As More Banks Trade Bitcoin, Bitcoin Volatility Would Reduce – Vanderwilt
Goldman Sachs being the first investment bank to offer its clients access to cryptocurrencies might see other Wall Street institutions face increased pressure from users who wish to access the same. Vanderwilt stated that the move would encourage other banks that fear missing out to offer crypto access to their clients. According to him, this would minimize the volatility of Bitcoin.
The bold moves of Goldman Sachs in the crypto industry do not come without some level of internal agitation. Goldman Sachs chief investment officer Sharmin Mossavar-Rahmani described Bitcoin and Ethereum as a bubble and has warned investors against it. However, the Bank would always have to heed the needs of clients and in this case, more exposure to cryptocurrencies is necessary.