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- Goldman Sachs executed the initial Bitcoin over the counter trade, tagging further institutional adoption of crypto assets. BTC is considered as an inflation hedge.
- The non deliverable option, offered by Goldman trading collaborator Galaxy, will make settlement of cash as soon as it matures.
- Goldman Sachs will now begin over the counter Ethereum options trade. ETH has gained a lot of traction after it announced to shift its mechanism to PoS.
Goldman Sachs has been utilizing Galaxy as a liquidity provider for digital assets in the futures, spot market and virtual assets exchanges, and for transactions with fiat banking institutions. Back in June 2021, Goldman Sachs called on Galaxy to release its Bitcoin futures trading products for CME Group.
Goldman Sachs also commenced providing its investors exposure to virtual currency Ethereum via Ethereum Fund of Galaxy.
Back in May 2021, Goldman Sachs released its Bitcoin trading desk and initiated offering Bitcoin non-deliverable forwards, whose value is pegged to Bitcoin.
Galaxy lists more than 100 virtual assets and facilitates trades in central exchanges and in over the counter markets.
This initial Over the Counter cryptocurrency execution in the context of elevating inflation raises the question if BTC is an effective hedge against inflation. Oftenly dubbed as “virtual gold,” BTC’s precise limit of 21 Million is meant to offset fiat’s depreciation.
By executing an over the counter trade and utilizing Galaxy as liquidity provider for its cryptocurrency options trade, Goldman Sachs is making direct customized trades in cryptocurrency possible for investors for initial time. On the other hand, because this trading is organized as cash-settled options, it might offset BTC’s alleged ability to hedge against fiat’s depreciation.
Furthermore, Goldman Sachs will extend cryptocurrency options “in due course.”
The investment management mammoth stated that it strategizes to provide OTC Ethereum options trading in an answer to elevating customer demand.
Bitfinex CTO, Paolo Ardoino embraced this move from Goldman Sachs, saying, “Institutional adoption of digital token-based products is inexorable and inevitable. Goldman’s decision to offer over-the-counter bitcoin and Ethereum options is doubtless a response to huge pent up client demand from investors that see the potential of cryptocurrency. While some of bitcoin’s most vocal critics display a flimsy technical grasp of blockchain applications, the smart money is moving inexorably to this space.”
About Bitfinex
Bitfinex is a P2P digital asset exchange, discovered back in 2012. Bitfinex offers virtual asset trading services to cryptocurrency traders around the globe. Platform has progressively made a name for itself in the crypto sector. Bitfinex trading team comprises experienced folks who are cryptocurrency enthusiasts.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
