Clients of Goldman Sachs, one of the largest US investment banks, are once again investing in cryptocurrencies en masse this year.
Many large banking clients are said to be embracing cryptocurrencies again, and this has something to do with Bitcoin (BTC)'s new hotspot Exchange Traded Funds (Traded Funds).
Bitcoin is on its way to a new milestone: 1 billion users
-
Bitcoin news
Goldman Sachs clients are returning to cryptocurrencies
And it won't just be private investors who will jump into cryptocurrencies en masse again in 2024. Goldman Sachs' large institutional clients will do so as well, says Max Minton, head of cryptocurrencies for the Asia-Pacific region.
The reason for this is the US Bitcoin exchange-traded funds, which were approved at the beginning of this year.
“The recent ETF approval has led to a return of interest and activity from our clients. “Many of our largest clients are already active or exploring opportunities to become active in this sector,” Mee said.Nton in an interview With Bloomberg.
Minton says that after a slow 2023 for cryptocurrencies, interest in the sector is picking up again this year.
“Last year was quieter, but since the beginning of the year we have seen an increase in client interest in onboarding, pipelines and volume.“.
Most of the demand will come from existing clients, especially traditional hedge funds, Minton says. These clients mainly use cryptocurrency derivatives, Minton says.
Bitcoin ETFs driving demand and perhaps Ethereum ETFs as well?
Goldman Sachs, which manages nearly $3 trillion in assets, launched a cryptocurrency trading platform in 2021 offering options and futures on bitcoin and ethereum (ETH). The bank does not trade cryptocurrencies itself and does not offer spot crypto products to its clients
Minton says that while demand for Bitcoin products remains at an all-time high, interest in Ethereum may increase. Especially if the US Securities and Exchange Commission (SEC) soon approves the first Ethereum ETFs.
However, hopes for approval of the first Ethereum ETF have diminished significantly recently. At the beginning of this year, Bloomberg ETF experts were expecting approval by the end of May, but that is no longer the case.
Post views: 435
Avid music fanatic. Communicator. Social media expert. Award-winning bacon scholar. Alcohol fan.