Recently Goldman Sachs did an option trade for bitcoin. The transaction was done through digital fund manager Galaxy Digital, which is at the forefront of providing liquidity for Goldman Sachs’ crypto products. As Bloomberg reports, Andrei Kazantsev, Global Head of Crypto Trading at Goldman Sachs, informed about plans to introduce OTC options trading for Ethereum during a client webinar. The move to the PoS model of Ether, the second largest cryptocurrency, has increased the interest of clients. PoS will make this token better from the investors point of view.
OTC transactions are usually large and are dominated by institutional traders. The entry of Goldman Sachs into OTC crypto options is also indicating that big trading firms will increase their business in it. These firms constitute a large number of clients of this investment bank. Goldman Sachs does not offer spot crypto trading but does provide access to crypto ETFs and options trading. Institutional traders prefer to invest in crypto tokens through a proxy rather than buying them directly. Goldman Sachs began trading bitcoin futures contracts with Galaxy Digital last year. However, its new OTC crypto options trading carries a high risk. In recent months, some financial institutions have changed their stance on cryptocurrencies and are exploring the possibility of trading related to it.
Trading in Ether increased before upgrading to ETH 2.0. This upgrade is expected to reduce the need for computations for electricity and staking, thereby making the token easier to access. Debt investors may also be interested in this token with the potential for higher return on staking. In staking, the token is locked for a set period, making it like a bond.
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