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Goldman Sachs team has reported that clients are returning to cryptocurrency investments this year, thanks to renewed appetite following the approval of spot Bitcoin exchange-traded funds (ETFs). According to a report by Bloomberg dated March 24, Max Minton, head of digital assets for Goldman Sachs Asia Pacific, stated that the firm’s biggest clients have recently become active in the crypto sector or are exploring activity.
Goldman Sachs and the ETF Process
Minton added that a significant part of the increased appetite for the cryptocurrency sector stemmed from the approval of ten new Bitcoin ETF applications in the United States in January, which made crypto assets a more integral part of traditional markets:
“The recent ETF approval has triggered a resurgence in our clients’ interest and activities.”
Minton explained that much of the new demand came from Goldman’s existing clients through the firm’s options and futures offerings, with hedge funds being the most prominent among their clientele. Goldman Sachs reported a record $2.8 trillion in assets under management by the end of 2023.
Despite having established its first crypto trading desk in 2021, Goldman currently does not offer any spot crypto products to its clients. The desk only provides services related to crypto derivatives, including Bitcoin and Ethereum options and futures. Minton shared the following comments on the matter:
“Last year was quieter, but since the beginning of this year, we’ve seen an increase in client interest in recruitment and volume.”
Notable Comments from a Prominent Figure
Minton said that Goldman’s clients primarily use derivatives to expose themselves to the volatility of crypto and to make weighted predictions about where prices will go in the medium term. He also added that Bitcoin-related products are among the most popular investment tools among active clients.
Minton also considered the potential approval of a spot Ethereum ETF in the US as an opportunity for the firm to shift its institutional clients towards Ethereum. However, Bloomberg ETF analysts have set the chances of an Ethereum ETF approval by the Securities and Exchange Commission at only 35% due to prolonged silence from the regulators until May.
Regardless of the ETF approval, Minton added that Goldman will try to open up to a broader universe of clients in the future, including asset management funds, banks, and more specialized crypto asset firms.
