Goldman Sachs, an American multinational investment bank and financial services company, is planning to allow options and futures trading in Ether, the cryptocurrency linked to the Ethereum blockchain . Ether is the second-largest cryptocurrency after Bitcoin. The bank will unveil its futures and options trading in Ether in the coming months, reported Bloomberg.
Ether would be the second cryptocurrency to be traded through Goldman. The Wall Street company had earlier this year restarted a trading desk for helping its customers deal in publicly traded futures tied to Bitcoin.
The new developments were announced by Mathew McDermott, who took charge last year as head of digital assets at Goldman Sachs. The digital assets business has grown to 17 people from four in his tenure. McDermott also revealed plans to facilitate trades of exchange-trade notes (ETNs) that tracked Bitcoin.
The multinational company has also invested in cryptocurrency-related start-ups. The bank recently invested $5 million in a company that creates and hosts blockchain nodes. In May, Goldman invested in another cryptocurrency and blockchain data provider, Coin Metrics, in a $15-million investment round.
While Bitcoin and other cryptocurrencies remain volatile, especially for a decentralised currency, cryptocurrency has seen a large uptake in 2021.
“We’ve actually seen a lot of interest from clients who are eager to trade as they find these levels as a slightly more palatable entry point,” McDermott told Bloomberg. “We see it as a cleansing exercise to reduce some of the leverage and the excess in the system, especially from a retail perspective.”
McDermott noted that many of his clients are interested in crypto, and about 10 percent are already trading in cryptocurrencies. His observations line up with the recent CNBC Millionaire survey, which showed that millennial investors were more willing to invest in digital assets like crypto and NFTs.
“Institutional adoption will continue,” he added. “Despite the material price correction, we continue to see a significant amount of interest in this space.”