Bitcoin (BTC) is the world’s biggest crypto by market cap, and it is also the oldest. As the 1st ever cryptocurrency, BTC certainly has had its fair share of ups and downs over the last decade, with the digital asset still being ranked as the top crypto after all this time. This isn’t to say that everything is going well for Bitcoin, far from it, in fact. BTC mining being banned in China and Bitcoin being removed from Tesla both heavily contributed to a huge dip in price recently, with a 30% drop being observed not too long ago.
However, these developments have not stopped various financial institutions from investing in Bitcoin, as Goldman Sachs has now become the world’s 1st investment bank to add BTC trading options to its list of services. To that end, a Bitcoin futures trading-based product has now been launched by the bank for its respective clients, and this has been done in collaboration with Mike Novogratz’s Galaxy Digital.
Partnership with Galaxy Digital
As per the latest developments, Galaxy Digital shall be providing liquidity to Goldman Sachs. Market makers also referred to as liquidity providers, tend to scoop up massive amounts of any particular asset prior to initiating a sale for the subsequent interested party or individual. What this means is that the bank’s users will be able to buy BTC whenever they like, regardless of whatever state the market may find itself in.
Moreover, this is the very 1st time in Goldman Sachs’s history that it shall be collaborating with a liquidity provider that is mainly focused on cryptocurrencies. Furthermore, in an effort to expand the bank’s own recently reopened trading desk, CME Group BTC Futures shall be offered to clients soon.
Goldman Sachs & Galaxy Digital providing a gateway into crypto
Damien Vanderwilt, the co-president of Galaxy Digital, stated that the firm has been successful in its goal to establish a pathway of sorts to the cryptocurrency industry. It is exactly because of this pathway that major institutions such as Goldman Sachs are able to offer services related to crypto, he added.
Damien also believes that the investment bank’s actions shall end up inspiring other various major banks to consider adding cryptocurrency-related services as well. The co-president claims that if more banks were to enable clients to start trading using BTC, then Bitcoin’s infamous volatility may decrease, which would only benefit everyone involved.
Lastly, Goldman Sachs also has plans to offer Ethereum (ETH) futures as well as related trading options before long.