Note

40% of Goldman Sachs' Clients Already Have Exposure to Crypto, Survey Shows

Verified Official
· Views 189

40% of Goldman Sachs' Clients Already Have Exposure to Crypto, Survey Shows

Photo: Coin Telegraph

(Coin Telegraph) - American banking giant Goldman Sachs has officially confirmed its plans to revive a cryptocurrency trading desk amid increasing demand from investors.

Matt McDermott, global head of digital assets for Goldman Sachs' global markets division, announced that the company will provide access to the Chicago Mercantile Exchange (CME) Bitcoin futures on its upcoming crypto platform. In a Friday Exchanges at Goldman Sachs podcast, the executive also noted that Goldman Sachs will offer cryptocurrency services with non-deliverable forwards, or NDFs, which are cash-settled, and usually short-term, forward contracts.

McDermott noted that initially Goldman Sachs’ cryptocurrency platform will be limited to these two products, stating, "We’re actually going live with that cryptocurrency trading desk, which would be quite narrow initially, but we will focus on CME futures and non-deliverable forwards. And we’re also now disseminating Bitcoin content to our institutional clients through our Marquee platform.”

According to McDermott, Goldman Sachs’ move into cryptocurrency comes in response to the increasing demand from its clients. Citing an internal survey of nearly 300 clients, the executive said that 40% of Goldman Sachs’ investors currently have exposure to cryptocurrency. “That seemed actually a little high to me, but I felt that was kind of very reflective of the demand we’ve seen over the last three to six months,” he said.

The executive also reported that 61% of Goldman Sachs’ surveyed clients expect digital-asset holdings to increase over the next year. Particularly, 76% of those surveyed see Bitcoin ending 2021 between $40,000 and $100,000, McDermott said. However, only 22% expect Bitcoin to surpass the $100,000 mark by the end of 2021, he noted.

Goldman Sachs originally wanted to set up a cryptocurrency trading desk in 2018, announcing the plan in late 2017. At the time, Bitcoin was sitting at its former all-time high levels after hitting $20,000 in December 2017.

Following a subsequent sell-off on cryptocurrency markets in 2018, Goldman Sachs was rumoured to have cancelled its cryptocurrency desk plans. Eventually, Goldman Sachs' Chief Executive Officer (CEO) David Solomon strongly refuted that the bank ever had plans to open a cryptocurrency trading desk in 2019.

In the latest interview, McDermott pointed out that the existing cryptocurrency landscape is very much different than 2017 in terms of growing institutional demand. “2017 was very much a retail-driven market. This time around, we’ve seen a huge volume of institutional demand across a broad spectrum of different industry types,” he said.

Reprinted from Coin Telegraph. The copyright is reserved by the original author.

Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.

FOLLOWME Trading Community Website: https://www.followme.com

If you like, reward to support.
avatar

Hot

No comment on record. Start new comment.