Goldman Sachs is considering expanding its crypto-related services by offering clients bilateral crypto options.
Under the bilateral options, customers who do own crypto-like hedge funds or bitcoin miners will be able to modify their bets to mitigate risks or boost yields. There is a lot of demand for derivative-type hedging, according to Andrei Kazantsev, Goldman’s global head of crypto trading, and developing an options market will be the next stage.
After restarting its crypto exchange department in March 2021 after a three-year break, the Wall Street behemoth’s interest in the space has grown. As per the SEC filing, Goldman Sachs will begin offering crypto-curious customers to access an Ethereum fund through Galaxy Digital.
Mike Novogratz’s Galaxy Digital is an investing firm that also provides Goldman with liquidity for its bitcoin futures product. The Galaxy Institutional Ethereum Fund, which debuted in March 2021, has a $250k minimum investment requirement.
In early January, a bank expert predicted that Bitcoin will begin to compete with gold as a store of value, eroding its market share.
According to the lender, Bitcoin presently enjoys a 20% share of the “store of value” market, which also includes gold. According to Goldman, if Bitcoin’s market share rises to roughly 50%, the price might reach $100,000.