{"id":16598,"date":"2021-05-07T13:53:30","date_gmt":"2021-05-07T13:53:30","guid":{"rendered":"http:\/\/ci0282802640002568"},"modified":"2021-05-07T13:53:30","modified_gmt":"2021-05-07T13:53:30","slug":"goldman-offering-bitcoin-derivatives","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/markets\/goldman-offering-bitcoin-derivatives","title":{"rendered":"Goldman Sachs Offers Bitcoin Derivatives, Unveils Cryptocurrency Trading Team"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p>Goldman Sachs launched a derivatives product based on the price of bitcoin for its clients last month, though it did not announce the move at the time.<\/p>\n<p>\u201cThe investment bank has opened up trading with non-deliverable forwards, a derivative tied to bitcoin\u2019s price that pays out in cash,\u201d <a href=\"https:\/\/news.bloomberglaw.com\/banking-law\/goldman-offers-new-bitcoin-derivatives-to-wall-street-investors\" target=\"_blank\" rel=\"noopener\"><em>Bloomberg<\/em><\/a><em> <\/em>reported. \u201cThe firm then protects itself from the digital currency\u2019s famous volatility by buying and selling bitcoin futures in block trades on CME Group Inc., using Cumberland DRW as its trading partner.\u201d<\/p>\n<p>Non-deliverable forwards entail contracts between two parties that will settle the difference between the spot price and the contracted price at a certain date in the future. The product essentially gives Goldman clients the ability to speculate on bitcoin\u2019s future price, an increasingly popular offering.<\/p>\n<p>\u201cInstitutional demand continues to grow significantly in this space, and being able to work with partners like Cumberland will help us expand our capabilities,\u201d Goldman\u2019s Asia-Pacific head of digital assets, Max Minton, told <em>Bloomberg<\/em>. \u201cThe new offering is \u2018paving the way for us to evolve our nascent cash-settled cryptocurrency capabilities.\u2019\u201d<\/p>\n<p>Goldman also just informed its markets personnel that a newly-formed cryptocurrency trading desk at the firm had successfully traded the non-deliverable forwards, as well as another bitcoin-tied derivative, <a href=\"https:\/\/www.cnbc.com\/2021\/05\/07\/goldman-sachs-unveils-new-cryptocurrency-trading-team-in-employee-memo.html?__source=iosappshare%7Ccom.apple.UIKit.activity.PostToTwitter\" target=\"_blank\" rel=\"noopener\">CNBC<\/a> reported.<\/p>\n<p>\u201cThe derivatives it traded, bitcoin futures and non-deliverable forwards, are ways to wager on the price of bitcoin,\u201d per the CNBC report. \u201cThe contracts are settled in cash and don\u2019t require that Goldman deals with actual bitcoin \u2026 because the bank isn\u2019t yet in a position to do so.\u201d<\/p>\n<p>Goldman\u2019s increasing adoption of bitcoin-tied financial products is a bellwether for the asset\u2019s growing reputation on Wall Street and among institutional investors. <a href=\"https:\/\/bitcoinmagazine.com\/business\/goldman-sachs-to-offer-clients-bitcoin-investment-vehicles\">In March<\/a>, the investment bank announced that it would soon be offering bitcoin investment vehicles for its private wealth clients.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Goldman Sachs is offering non-deliverable forwards based on bitcoin\u2019s price and unveiled a new desk that\u2019s trading bitcoin derivatives.<\/p>\n","protected":false},"author":2705,"featured_media":9604,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[377],"class_list":{"0":"post-16598","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-goldman-sachs"},"author_data":{"id":2705,"name":"Peter Chawaga","nicename":"peter-chawaga","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/12\/peterc-96x96.jpg"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/bitcoin-price-analysis-range-bound-market-coiled-for-next-move.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/16598","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/2705"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=16598"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/16598\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/9604"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=16598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=16598"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=16598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}