Goldman Sachs begins trading Ethereum-linked derivative product (ETH)

Goldman Sachs begins trading Ethereum-linked derivative product (ETH)

Wall Street giant Ethereum (ETH) has completed its first non-deliverable futures contract, a derivative product that pays based on the price of ether and provides institutional investors with indirect exposure to the cryptocurrency.

Goldman Sachs continues to accept cryptocurrencies despite the bear market

A forward non-deliverable contract (NDF) is a derivative contract that allows its holder to disclose an asset without owning it. It causes a cash payment at the time of settlement, depending on the price of the ether.

The counterparty to the transaction was Marex Financial – a London-based financial services company.

The move comes on the day the total cryptocurrency market – including ether – fell to an unprecedented low since December 2020. The total market is now worth less than $ 1 trillion, and less than $ 450 billion capitalization bitcoin market. Ethereum funds have already been available on Galaxy Digital for Goldman Sachs clients since last March.

It can be argued that the exchange reflects a sense of long-term belief in cryptocurrency as an asset class, despite the recent downturn. In January, the company’s former CEO admitted that cryptocurrency “ happening After long-standing doubts, the company first announced in June 2021 that there would be an ETH derivative. As Goldman Sachs has pointed out, the mass adoption of bitcoin does not guarantee an increase in its value.

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Lots of projects for Goldman Sachs

The bank initially expected Ether to reach $ 8,000 by the end of 2021, but that forecast was not far off target.

In February 2020, Goldman Sachs and Citigroup both experimented with a blockchain-based stock exchange, similar to the ones that could exist with Ethereum.

Goldman Sachs is expanding its activities in the cryptocurrency universe. In fact, last month, Goldman Sacha launched bitcoin loans thanks to Coinbase.

Last March, Goldman Sachs made its first Over-the-Counter encrypted transaction by working with Galaxy Digital.

It is especially important to note the activities of financial giants in the field of cryptocurrency. In fact, in these times bear market, many people are signing the death knell of bitcoin and other cryptocurrencies again, but this is part of the market. No market can only go up, and during the multiple crisis, covid, war and financial instability, all the assets are in trouble. It also shows us that bitcoin is not yet mature enough to be a treasure trove of gold-like value. However, bitcoin is much younger than gold and therefore it will be necessary to work on better regularity on cryptocurrencies to see bitcoin one day save from inflation.

Bitcoin has always been given for dead, at $ 3, $ 30 or $ 3000, this time around. While there is some panic and selling at a loss, whales and funds continue to buy our bitcoins, so don’t worry, and look long term.

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Alexis Patin

Passionate about geopolitics, economy, cryptocurrency, Eurasia and travel! (as far east as possible), crypto-trader for 4 years.

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