A large American investment bank Goldman Sachs has provided its clients with new derivatives for bitcoin.
These are forward contracts without physical delivery. These are contracts between two participants, the expiration date of which is set for a certain period. In this case, the participants receive profit (or loss) when the asset price deviates from the contract price. The new forwards are tied to the bitcoin rate, allowing Goldman Sachs clients to speculate on the BTC rate.
There is no question of any physical delivery of bitcoins. However, as the bank’s CEO David Solomon said earlier, the bank does not plan to launch investment products with physical delivery of cryptocurrencies.
Contracts are settled in US dollars. At the same time, Goldman Sachs “protects itself from the famous volatility of cryptocurrencies by buying Bitcoin futures on the CME exchange with the help of trading partner Cumberland DRW.”
The launch of Bitcoin forwards on the Goldman Sachs platform took place last month, but was not advertised. We remind that earlier it was announced about the intention of the investment bank to launch such investment products, but the launch date was unknown.
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