Galaxy and Goldman Sachs shake hands
Goldman Sachs has gone one step further in its efforts to help hedge funds and other large institutional clients bet on bitcoin.
According to CNBC, the bank started trading bitcoin futures in partnership with Galaxy Digital, the crypto investment bank founded by Mike Novogratz.
Faced with growing demand from institutional clients, Goldman Sachs reopened its crypto trading office in March after a three-year hiatus. The office is part of the bank’s US Global Markets division.
According to Galaxy co-chairman Damien Vanderwilt, this is the first time Goldman has employed a digital asset company as a counterparty since the investment bank launched its Bitcoin office last month.
Recent moves by Goldman Sachs, the world’s largest investment bank, could have an effect on Wall Street and beyond as banks increasingly face pressure from clients seeking exposure to bitcoin . According to Vanderwilt, a former Goldman partner who joined Galaxy last year, Goldman is effectively allowing other banks to start trading cryptocurrencies by being the first major U.S. bank to do so.
“There’s a whole dynamic with big banks that I’ve seen time and time again: security in numbers,” Vanderwilt said this week in an interview. “Once one bank does this, other banks will have [fear of missing out] and they will be integrated because their customers requested it.
Galaxy has taken a number of high-profile actions in recent months, including a succession of acquisitions from digital asset management companies. Vision Hill and BitGo, the latter which Galaxy bought for $ 1.2 billion in May, are among the acquisitions.
Galaxy’s acquisitions have more than doubled the company’s overall profit since 2020 and are part of its journey to a U.S. listing later this year.
Related article | Goldman Sachs to start trading Ethereum options and futures
A new era
According to several sources, Goldman Sachs is the first bank in the United States to actively trade cryptocurrencies. Bitcoin and cryptocurrency are viewed by many fiat banking institutions as a financial bubble. After more than a decade of existence, many financial experts believe that crypto is still a hoax.
However, following the new Goldman-Galaxy cooperation, consumers will pressure banks to expose their customers to cryptocurrency. Banking organizations will be forced to keep their customers happy as the pressure to donate bitcoin intensifies.
As a result, as more and more financial institutions support the currency, global acceptance will increase. As a result, Bitcoin will be available even in the most remote corners of the market. As a result, as the adoption of Bitcoin grows, volatility issues will decrease and eventually disappear.
Related article | Galaxy Digital CEO: Bitcoin Dips Should Be Bought Despite BitMEX News
Featured image from Pixabay, chart from TradingView.com