Hedge Fund Clients Flock to Crypto at Goldman Sachs

Goldman Sachs’ clients are reportedly showing renewed interest in cryptocurrencies this year, thanks to the approval of Bitcoin exchange-traded funds (ETFs). Max Minton, head of digital assets for Goldman Asia Pacific, revealed that many of the firm’s largest clients are either actively involved in or exploring opportunities in the crypto sector. The approval of ten new Bitcoin ETFs in the United States earlier this year has played a significant role in increasing the demand for cryptocurrencies, as it has validated their position in traditional markets. Minton explained that most of the increased demand comes from Goldman’s existing clients, particularly hedge funds, who engage with the firm’s options and futures offerings. Goldman Sachs currently does not offer spot crypto products but provides exposure to crypto derivatives through its trading desk. Minton highlighted a surge in interest from clients since the beginning of the year, primarily using derivatives to gain exposure to the volatility of cryptocurrencies and make predictions on price movements. Bitcoin-related products are currently the most popular investment vehicles among active clients. Minton also expressed hope for the approval of a spot Ether ETF in the US, which could attract institutional clients towards Ether. Bloomberg ETF analysts estimate the chances of an Ether ETF approval by May at just 35%, as the Securities and Exchange Commission has been unresponsive to potential fund issuers. Despite the uncertainty, Goldman intends to expand its client base to include asset management funds, banks, and specialized crypto asset firms in the future.