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Business April 1, 2021 3 mins read

Goldman Sachs will Start Offering Bitcoin to Private Wealth-Management Clients

Business ı By Rochdi Rais

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Mary Rich Vice President at Goldman Sachs

 Goldman Sachs may start offering Bitcoin and other digital asset investments to its private wealth-management clients, stated a report by CNBC on Wednesday. The multi-national investment Bank could start offering the investment vehicles by the 2nd Quarter. Mary Rich, the global head of digital assets, diclosed this information. 

"We are working closely with teams across the firm to explore ways to offer thoughtful and appropriate access to the ecosystem for private wealth clients. Which is something we expect to offer in the near-term," Rich told CNBC in an interview this week.

“The bank is exploring a range of investments in digital assets, right from physically-backed bitcoin, derivatives, or traditional investment vehicles,” she added.

Goldman Sachs is considering other akin investing ways

Goldman’s private wealth management business caters to clients holding a minimum of $25 million in investment capacity. According to Mary Rich, some clients are turning to Bitcoin as a hedge against inflation in the last 12 months.

"There are also large contingents of clients who feel like we're sitting at the dawn of a new Internet. We are looking for ways to participate in this space," she said.

Goldman could offer similar bitcoin funds and other investing ways which are "more akin to the underlying asset class, which trades 24-7 globally," Rich said. However, she added some BTC funds such as Galaxy can only be traded one time each quarter.

"We're still in the very nascent stages of this ecosystem. No one knows exactly how it will evolve, or what shape it will be," Rich said. "But I think it's fairly safe to expect it will be part of our future."

World’s largest derivatives marketplace to add Bitcoin futures

Chicago Mercantile Exchange Group (CME), the largest derivatives marketplace in the world disclosed it will be introducing micro Bitcoin futures by May 3rd. The marketplace announced the news after large financial institutions and investors endorsed cryptocurrencies, pushing them to new all-time high prices. The micro bitcoin futures of CME will be one-tenth the size of one Bitcoin. Currently, it is still pending regulatory review. 

The move will enable traders to invest in the digital currency cost-effectively on fraction units. The smaller-sized contract can be settled on a cash basis.

"The introduction of micro bitcoin futures ... will offer even more choice and precision in how participants can trade regulated bitcoin futures. This will take place in a transparent and efficient manner at CME Group," Tim McCourt. McCourt is the CME Group global head of equity index and alternative investment products. 

"This will serve as a great function," John Wu, president at AVA Labs, told Insider. " It will increase participation, subsequently increasing liquidity, and, will provide hedging opportunities."

CME disclosed it has seen 13,800 bitcoin futures contracts (equivalent to around 69,000 bitcoin) and 767 ether futures contracts traded (equivalent to 38,400 ether) on average per day.

 

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Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

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