Assets Under Management AUM

Goldman Sachs relies on cryptocurrency management firm Galaxy Digital to trade Bitcoin futures

Galaxy Digital Co-Chairman Damien Vanderwilt announced today that his company has partnered with Goldman Sachs to help deliver bitcoin futures products. The partnership marks one of the first occasions where a U.S. multinational investment bank has partnered with a crypto asset service provider.

Galaxy serves as Goldman’s counterparty for Bitcoin futures trading

Goldman Sachs is trading bitcoin futures with Galaxy Digital according to statements made by Galaxy Co-Chairman Damien Vanderwilt during a interview with CNBC.

Galaxy Digital is a financial services and investment management innovator founded by the company’s CEO, Mike Novogratz. Vanderwilt says Goldman Sachs, the bank with $ 2.1 trillion in assets under management (AUM), could inspire other incumbent financial operators to follow suit.

“There’s a whole dynamic with big banks that I’ve seen time and time again: security by numbers,” Vanderwilt explained during his discussion on the topic. “Once one bank does this, other banks will have [fear of missing out] and they will be integrated because their customers requested it.

According to Vanderwilt, Goldman is dependent on Galaxy because regulatory policy prevents the multinational investment bank from directly managing the main crypto asset. Max Minton, head of digital assets for Goldman’s Asia-Pacific region, said during the announcement that the bank was providing customers with the assets they demanded.

“Our goal is to provide our clients with the best execution prices and secure access to the assets they wish to trade,” said Minton. “In 2021 this now includes crypto, and we are delighted to have found a partner with a wide range of liquidity venues and differentiated derivatives capabilities spanning the cryptocurrency ecosystem.”

As more and more institutional players join the fray, “there will be less volatility”

Minton and Vanderwilt’s statements follow a report that Goldman was preparing to offer ether futures and option swaps. At the time, Goldman said that “institutional adoption will continue” in the crypto space.

In mid-April, Galaxy Digital revealed that it had entered the fray of bitcoin exchange-traded funds (ETFs) when it submitted its Form S-1 registration to the State Securities Exchange Commission (SEC). -United.

Vanderwilt also said that as more institutional players join the crypto ecosystem, volatility will increase less and less.

“You are moving market participants from north of 90% of retail, much of which has access to ridiculous amounts of leverage, to an institutional community, which has proper and proven rules and regulations. on leverage, assets – the mismatch of responsibilities and risk, ”Vanderwilt concluded. “The more activity there is in the institutional community, the less volatility there will be.”

What do you think about the partnership between Goldman Sachs and Galaxy Digital to offer Bitcoin futures to clients? Let us know what you think of this topic in the comments section below.

Tags in this story

bitcoin futures, BTC Futures, Damien Vanderwilt, ether, Ether Futures, Galaxy Digital, goldman, Goldman Sachs, institutional players, institutionalization, investment banking, Mike Novogratz, volatility

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