Goldman Sachs is Set to Start Trading Bitcoin Futures

Bitcoin Futures

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Goldman Sachs has announced that it will start trading Bitcoin futures within a week on behalf of its clients. The bank has also clarified that it will use its own money but have not clarified the exact launch date. This initiative was signed last week by the bank’s directors, and the bank is also set to create its own flexible version of a future called the non-deliverable forward which it will offer to clients.

Rana Yared, a Goldman Sachs executive, said that the decision arrived following frequent inquiries from clients which indicated interest in holding Bitcoin as an alternative asset. According to Rana:

“We faced many clients saying they want to hold Bitcoin or bitcoin futures because they think it’s an alternative store of value.”

To start the project, the investment bank has already hired its first digital asset trader Justin Schmidt to ensure daily operations. Schmidt is well experienced since he previously worked at hedge fund Seven Eight Capital before leaving to start trading digital currencies.

This latest news shows the growing involvement of the Bank in crypto-market. CEO Lloyd Blankfein had previously stated that the bank was already clearing bitcoin futures for its clients. However for the bank to directly handle Bitcoin, they would require approval from the US regulators such as the SEC. The bank has stated that they will be very careful. Yared added that: “for everyone involved, there has been a personal skepticism tabled about them. This is because it’s a risk we understand very well making it a heightened risk that we need to very careful of.”

The popularity of digital currencies is taking another turn since banks have started collaborating with the markets. The sector is likely to grow faster after countries like South Korea which had threatened to bank digital currencies announced that it’s considering using them to ensure a cashless society.

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