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28 March 2024
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Bitcoin futures: Goldman Sachs chooses Galaxy Digital

Goldman Sachs is trading bitcoin futures thanks to Galaxy Digital.

This was revealed by CNBC , saying Goldman Sachs aims to help hedge funds and large institutional clients to bet on bitcoin.

For this reason, the bank began trading bitcoin futures by relying on the crypto company founded by Mike Novogratz . This is the first time Goldman Sachs has used a digital asset company as a counterparty since setting up its crypto desk last month.

The current regulation of the banking sector does not allow banks to manage BTC directly, and this is why an intermediary has been chosen, similar to how they operate in the commodity markets, for example.

Furthermore, many Galaxy Digital executives come from Goldman Sachs.

Goldman Sachs paves the way for banks and Bitcoin futures

Galaxy co-chair and former Goldman partner Damien Vanderwilt said that as this is the first major US bank to trade cryptocurrencies, it could lead the way for other giants of the genre.

He said:

“There is a whole dynamic with the major banks that I have seen over and over again: safety in numbers. Once a bank does this, the other banks will be [afraid of losing the opportunity] and they will do it too because their customers have asked them to. “

However, Goldman also stated that it will also seek other liquidity providers to trade bitcoin futures contracts.

Goldman’s head of digital assets for the Asia-Pacific region, Max Minton , said:

“Our goal is to provide our clients with the best prices and secure access to the assets they wish to trade. In 2021 this also includes cryptocurrencies and we are delighted to have found a partner with broad liquidity and differentiated derivatives capabilities that span the cryptocurrency ecosystem. “

Vanderwilt also added that the more banks they allow their customers to trade bitcoin, the more they will improve the depth and breadth of this market, eventually possibly reducing its volatility as well.

The curious thing is that several senior Goldman Sachs executives are still skeptical of bitcoin , but as the bank’s customers ask for financial instruments to invest in this market, the bank is in fact forced to offer them.

Vanderwilt further revealed that in 2017, as Goldman’s senior commercial executive, he was tasked with helping kickstart the bank’s first concrete effort to enter the bitcoin futures market, but that plan was later shelved. Now he’s basically doing the same thing as Galaxy co-chair.

In this regard he stated:

“There is a lot of irony, it makes me smile a lot. But I’m really happy, it’s a happy full circle ”.

News Source

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