Goldman Sachs to extend crypto offerings to Ethereum

A month after launching its Bitcoin derivatives product, investment banking giant Goldman Sachs is pitching its tent deeper into the cryptocurrency space. According to a Bloomberg report, the investment bank is planning to offer Ethereum options and futures in the next few months.

Goldman’s head of digital assets Matthew McDermott reportedly detailed the bank’s intentions in a phone interview. He also said that the bank is planning to facilitate trades via Bitcoin-tracking exchange-traded notes. He explained:

We’ve actually seen a lot of interest from clients who are eager to trade as they find these levels as a slightly more palatable entry point. We see it as a cleansing exercise to reduce some of the leverage and the excess in the system, especially from a retail perspective.

According to McDermott, his conversations with clients suggest that cryptocurrencies are not just a passing fad. He asserts that institutional adoption will continue, noting that a recent survey involving conducted by the bank showed that close to one in ten institutions (out of the 850 institutions surveyed) are already trading cryptos. Meanwhile, about 20% have indicated interest.

Despite the material price correction, we continue to see a significant amount of interest in this space.

In retrospect, the shift to Ethereum products does not come as a surprise. Last month Goldman published a report titled “Crypto: A New Asset Class?” In the paper, the author argued that Ethereum could become the largest blockchain in the future.