Hedge Fund Client Goldman Sachs: Interest In Crypto Increases

Goldman Sachs, the world's leading financial services company. (Photo; Doc. El Economysta)

JAKARTA Recently, a report from Bloomberg showed that Asia Pacific division agency client Goldman Sachs showed revived interest in Bitcoin, Ether, and other crypto assets. This trend signifies a striking evolution in the investment landscape for traditional financial institutions.

According to Max Minton, head of digital assets in Goldman Asia Pacific, a large number of the company's main clients have recently been involved or are considering opportunities in the crypto industry.

Bitcoin: Main Choice

The increasing interest in cryptocurrencies follows the approval of Bitcoin's exchange-traded funds (ETFs) spot some time ago. Minton highlighted the impact of approval of ten new Bitcoin ETFs in the United States in January, which it describes as a driver of renewed interest and activity.

"The recent ETF approval has sparked a resurgence in the interests and activities of our clients," Minton said.

Goldman Sachs has seen a surge in demand for its derivative offer, particularly from hedge funds and other institution clients. Minton noted that its main clients use derivatives to gain exposure to crypto volatility and make predictions about price movements in the medium term.

According to Minton, Bitcoin remains the most popular investment vehicle among active clients. However, there has been growing anticipation surrounding Ethereum's Ethereum spot ETF approval in the US, which could further diversify Goldman's institutional client portfolio.

It should be noted that despite setting up the first crypto trading office in 2021, Goldman has not introduced crypto spot products to his clients. Instead, the office exclusively facilitates exposure to crypto derivatives, including assets such as Bitcoin and Ethereum.

Ethereum ETF Approval In May: Analysts Alert

However, analysts expressed caution over Ethereum's ETF approval probability in May, estimating a 35% probability. Market participant optimism has been reduced by the extended silence of the Securities and Exchange Commission (SEC) on the matter.

Eric Balchunas, an ETF analyst at Bloomberg, acknowledged the reduced probability for Ether ETF approval but remained optimistic about its actual introduction, stating, "Record: 35% is not 0%, it is still possible, and in the long term we believe it will happen," Balchunas said.

Going forward, Goldman Sachs aims to expand its client base to cover asset management funds, banks, and crypto asset companies. While ETF's approval is still uncertain, the company remains committed to providing innovative solutions and serving growing needs of institutional investors in the crypto space.