Goldman Sachs’ clients are reportedly showing renewed interest in cryptocurrency this year, thanks to the approval of spot Bitcoin exchange-traded funds (ETFs). Max Minton, head of digital assets for Goldman Asia Pacific, revealed that many of the firm’s largest clients have become active or are considering entering the crypto sector. The approval of ten new Bitcoin ETFs in the US has played a significant role in stimulating this increased appetite for cryptocurrency, as it solidifies crypto assets as a more integral part of traditional markets. Minton explained that most of the demand is coming from Goldman’s existing clients, particularly hedge funds, who are utilizing the firm’s options and futures offerings. Despite launching its first crypto trading desk in 2021, Goldman currently does not offer any spot crypto products to its clients. However, Minton noted that there has been a rise in interest since the start of the year, with clients using derivatives to gain exposure to crypto volatility and make predictions on price movements. Bitcoin-related products are the most popular investment vehicles among active clients, but Minton believes that the potential approval of a spot Ether ETF in the US could shift Goldman’s institutional clients towards Ether. However, analysts from Bloomberg ETF estimate the chances of an Ether ETF approval by May to be only 35%, as the Securities and Exchange Commission’s lack of response to fund issuers is seen as bearish. Despite this uncertainty, Minton stated that Goldman will aim to expand its client base to include asset management funds, banks, and specialized crypto asset firms in the future.
Crypto is once again attracting Goldman Sachs hedge fund clients in large numbers this year.