Goldman Sachs’ clients are diving back into the world of cryptocurrency, with renewed interest sparked by the approval of spot Bitcoin exchange-traded funds (ETFs). According to Max Minton, head of digital assets for Goldman Asia Pacific, many of the firm’s largest clients are either actively participating in or exploring opportunities in the crypto sector.
The approval of ten new Bitcoin ETFs in the United States in January has played a significant role in reigniting interest in cryptocurrency among Goldman’s clients. Minton stated, “The recent ETF approval has triggered a resurgence of interest and activities from our clients.”
While Goldman Sachs does not currently offer spot crypto products to its clients, the firm’s options and futures offerings have seen a surge in demand. Hedge funds are among the most active clients utilizing these services. Despite a quieter year in 2022, Minton noted a noticeable increase in client interest and activity since the beginning of this year.
Bitcoin-related products remain the top choice for investment among Goldman’s clients, but Minton also highlighted the potential shift towards Ether if a spot Ether ETF is approved in the U.S. However, the chances of an Ether ETF approval by May are currently estimated at just 35%.
Looking ahead, Minton expressed Goldman’s intention to expand its client base to include asset management funds, banks, and specialized crypto asset firms. The firm aims to tap into a wider universe of clients in the future, regardless of ETF approvals.
Overall, the approval of Bitcoin ETFs has sparked a renewed interest in cryptocurrency among Goldman Sachs’ clients, paving the way for further exploration and investment in the digital asset space.