After much contemplation and inquiries following the announcement to launch Bitcoin Futures through one of its trading desks, Goldman Sachs has finally allowed clients to trade in Bitcoin Futures via one of its New York trading desks, according to Forbes. This is a significant development in the crypto sphere as it will further push the acceptance of this new asset class among masses. With the launch, Goldman Sachs became the first regulated financial institution to offer such a service.
Basically, Goldman Sachs will help out institutional investors into the trading of Bitcoin. The bank will not be involved in buying and selling of Bitcoin rather it will trade in Bitcoin futures contracts for clients using its own fund, in additional to the non-deliverable futures contract. Although it remains unclear how this launch will affect the Bitcoin prices in the future but such endorsement from leading securities firm signals confidence to not only Bitcoin but also to the cryptocurrency market as a whole.
Late to the Party??
While Goldman Sachs entered the cryptocurrency market offering institutional clients to trade in Bitcoin Futures, CultureBanx founded Bitmex is way ahead of the game and already been offering derivative products to retail investors. As noted in the Forbes article, it has an average daily trading volume of $3 million. In 2017 alone, it posted revenue of $83 million and in January 2018, it posted $21 million in revenue.
Lately, there has been a surge of various investment funds and regulated entities entering the crypto space. eToro senior analyst Mati Greenspan, has actually predicted this surge of Wall Street investment firms entering the space. He specifically explained how institutional investors are trying to catch the bottom of this market after missing the boat late last year.
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