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Goldman Sachs launches Ethereum futures trading

Photo of: Joseph Stone
by Joseph Stone

The Goldman Sachs trading desk plans to offer derivatives on Ether (ETH) in the coming months, in addition to Bitcoin.

The plunge in May in the price of cryptocurrencies had a negative impact on investor sentiment and willingness to invest in this market. The releases of Bitcoin products reached record highs in recent weeks.

On the other hand, Ether-based products were seeing an increase in investments. Investors chose to divest from BTC in favor of Ethereum. However, this trend is now in decline.

Ether “saw the most significant outflows last week on record [since 2015], totaling $12.7 million,” CoinShares comments. Not that a giant like Goldman Sachs would be deterred, however.

The Wall Street investment bank confirms its interest in crypto-assets. In 2021, it reopened its trading desk and offered derivatives on Bitcoin. Now, it is adopting Ether.

In the coming months, Goldman Sachs will also offer derivatives on Ether. The information was made official with Bloomberg by the bank’s head of digital assets, Mathew McDermott.

So the financial giant is developing options and futures contracts on Ether. And the company is not worried about the cryptocurrency crisis and its impact on investor appetite for these products.

“Institutional adoption will continue. […] Despite the significant price correction, we continue to see significant interest in this area,” thus confides the boss of digital assets at Goldman Sachs.

To judge this, the executive relies on a survey conducted last week among 850 institutions. And among the respondents, nearly 10% say they are currently investing in crypto. But more importantly, they are 20% to say they are interested in this market.

And Ether is a high-potential asset. Institutional inflows into Ether products reach nearly $1 billion in 2021. Total assets are about $11.1 billion, according to CoinShares.