Published: 06.04.2022
Article reading time:
2 minutes.
The American investment bank Goldman Sachs, amid growing interest from customers in Ethereum, will offer an option product of increased profitability based on ether.
Andrey Kazantsev, Head of International Cryptocurrency Activities at Goldman Sachs, explained on Tuesday, April 5, that the bank’s institutional clients are showing a growing interest in the cryptocurrency industry.
According to him, Goldman employees from the cryptocurrency division claim that the bank’s clients are increasingly talking about the attractiveness of ether “as a more suitable asset class for investment.”
Therefore, based on its experience with bitcoin, the American bank decided to try its hand at over-the-counter options with ether. This will allow customers to offer an over-the-counter product based on ether with a high level of risk hedging, high profitability for conducting especially large transactions.
Kazantsev did not specify whether Goldman Sachs would use a well-established strategy to enter the cryptocurrency market through a partnership agreement with a crypto company. Recall that, entering the bitcoin market, Goldman Sachs began to cooperate with Galaxy Digital.
Goldman Sachs Head of Cryptocurrency Operations noted that Ethereum’s ongoing transition from Proof of Work (PoW) to Proof of Stake (PoS) has increased demand for Ethereum and products based on this cryptocurrency. Algorithm changes contributed greatly to Goldman Sachs’ decision to launch over-the-counter Ethereum options.
Goldman Sachs’ decision to offer over-the-counter (OTC) Ethereum options is also driven by a desire to regain the bank’s dominance in the cryptocurrency market. Caitlin Long, a bank clerk with 20 years at Credit Suisse and Morgan Stanley, said last week that Goldman Sachs’ indecisiveness allowed JP Morgan to outperform a competitor. Long believes that in a very short time Goldman Sachs will regain its leadership due to a strong team in charge of working with cryptocurrencies.
Source: Bits
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
