Goldman Sachs’ hedge fund clients are diving back into cryptocurrencies this year. Their renewed interest is sparked by the launch of Bitcoin exchange-traded funds (ETFs).
Max Minton, who oversees digital assets for Goldman in the Asia Pacific, highlighted a surge in crypto activities. He credited the boost to the U.S.’s approval of Bitcoin ETFs in January.
According to a March 24 Bloomberg report, Minton observed a notable uptick in client activities. This enthusiasm is linked to the introduction of ten new Bitcoin ETFs, validating crypto’s market role.
“Our clients are eagerly returning to crypto, driven by recent ETF approvals,” Minton stated. He noted that Goldman’s hedge fund clients are the most active in exploring crypto through derivatives.
Despite a quiet previous year, Goldman witnessed a significant increase in client engagement from the year’s start. Minton revealed that Goldman manages a staggering $2.8 trillion in assets as of 2023’s end.
Goldman’s crypto desk, launched in 2021, focuses on derivatives like Bitcoin and Ether futures. However, it hasn’t expanded into spot crypto products yet.
Minton emphasized the strategic use of derivatives by clients for navigating crypto’s volatility. Bitcoin remains the top choice for these investors.
Looking ahead, Minton anticipates interest in Ether may rise with potential ETF approvals. But, Bloomberg’s ETF analysts see only a 35% chance for an Ether ETF by May, amid SEC hesitations.
This pivot towards crypto, particularly Bitcoin ETFs, signals a broader acceptance in traditional markets. South African investors are keenly watching these developments, aligning with global trends.
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