Goldman Sachs Observes Renewed Client Interest in Cryptocurrencies

Goldman Sachs has observed a resurgence of interest in digital asset-related products among its clients. This was stated by the bank’s director in the Asia-Pacific region, Max Minton, in an interview with Bloomberg.

“Many of our largest clients are already actively involved or are exploring the possibility of entering this field,” he noted.

In his view, the approval of spot Bitcoin ETFs in the US has fueled interest in the industry from traditional players.

Minton pointed out that most investors remain focused on the first cryptocurrency, but this trend may change with the launch of spot Ethereum-ETH.

Investors most frequently use crypto derivatives for direct trading, yield enhancement, and hedging, the top manager emphasized.

Since 2021, the bank has been offering settled options on Bitcoin and Ethereum.

Demand among Goldman Sachs clients mainly comes from traditional hedge funds. However, the institution aims to encompass a “broader client paradigm,” including asset managers, banks, and select crypto-focused companies.

In addition to trading, Goldman Sachs is engaged in the tokenization of traditional assets using blockchain. The bank recently launched a corresponding platform called GS DAP, the regional director clarified.

Minton also reported on venture investments in startups that have “strategic significance for the development of the digital asset market structure.”

“We have a portfolio, and we will invest if or when it makes strategic sense,” he added.

Earlier, Goldman Sachs mentioned the possibility of acquiring claims against liquidated crypto firms.

In March 2023, the bank filed a patent application for a solution that integrates blockchain technologies into the settlement mechanism.