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American multinational investment bank, Goldman Sachs Group has reopened its Bitcoin trading desk and will also explore the possibility of launching an exchange-traded-fund. This was revealed by a Reuters source today.
Goldman Sachs had launched a Bitcoin trading desk back in 2018 however, with the cryptocurrency industry going into a bear market it ultimately retired the service. With cryptocurrency prices reaching new all-time highs, and interest surging, Goldman Sachs is expected to get back in the game.
According to the source, Goldman Sachs will sit within the U.S Global Markets Division on Monday to begin “dealing with bitcoin futures and non-deliverable forwards.” These derivatives products offer investors the opportunity to bet on Bitcoin’s future price and have become even more attractive with the increased market volatility.
According to the source, the bank is “also exploring the potential for a Bitcoin exchange-traded fund and has issued a request for information to explore digital asset custody.”
Last year at the peak of the global pandemic when Bitcoin was trading just below $10,000, Goldman Sachs representatives remarkably stated that “cryptocurrencies, including Bitcoin, are not an asset class.” To add that a “security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients.”
That a year can make a difference to the point that Goldman Sachs cannot ignore developments is obvious. And reflected by Bitcoin recently hitting a new all-time high above $58,000, the entrance of large corporations like Tesla, MicroStrategy, and Square, to the point of Coinbase preparing to go public in the coming weeks with an estimated valuation of around $100 billion.
Today Bitcoin is trading near $49000, with a market cap over $900 billion.
Other financial giants like CME Group Inc, Intercontinental Exchange Inc, and Fidelity have traded Bitcoin futures for some time now, but Goldman Sachs decision will undoubtedly spur further interest in crypto markets and is to be seen as yet another bullish sign for Bitcoin.