Goldman Sachs Group has relaunched its cryptocurrency trading desk and plans to begin offering Bitcoin futures contracts and non-deliverable forwards (NDFs) to clients starting next week.
Why Goldman Sachs Is Returning to Bitcoin Trading
"The fundamental reason for Goldman Sachs' renewed interest in Bitcoin services lies in the cryptocurrency's renewed price volatility coupled with an overall upward trend," explains Jiang Zhaosheng, Blockchain Research Director at 01 Think Tank and Digital Asset Institute researcher.
Key factors driving institutional interest:
- Bitcoin prices surged over 470% in the past year
- Increasing acceptance as an inflation hedge
- Growing mainstream adoption by investment firms
👉 Why institutional investors are flocking to Bitcoin
Institutional Adoption Reaches New Heights
Recent developments show accelerating institutional participation:
Expanding Investor Base:
- Moving from hedge funds to insurers and pension funds
- Even small allocations can significantly impact Bitcoin valuation
Goldman's Expanded Crypto Services:
- Bitcoin futures and NDFs
- Exploring BTC ETFs and digital asset custody
- Involvement in blockchain and CBDC projects
DOT ETP Purchases:
- Goldman Sachs, Morgan Stanley among buyers of first Polkadot ETP
Competitive Landscape in Crypto Services
Major financial institutions entering the space:
| Institution | Crypto Service Offering |
|---|---|
| NY Mellon Bank | Digital asset custody platform |
| CME Group | Cryptocurrency derivatives |
| Fidelity | Bitcoin investment products |
Coinbase's upcoming IPO marks a watershed moment:
- $1.277B total 2025 revenue (128% YoY growth)
- 85.8% from trading fees
- First major crypto exchange traditional market listing
"While both offer Bitcoin trading, Coinbase and Goldman serve fundamentally different client segments," notes Jiang Zhaosheng.
Market Outlook and Regulatory Environment
"Cryptocurrency markets present excellent opportunities despite volatility, but expect increasingly stringent regulation," warns Prof. Kevin Chen of New York University.
Key considerations for investors:
- Different risk profiles for retail vs. institutional participants
- Evolving custody solutions
- Regulatory clarity still developing
👉 How to navigate crypto volatility
Frequently Asked Questions
Q: Why did Goldman Sachs originally suspend crypto trading?
A: The 2018 suspension followed regulatory concerns during a market downturn.
Q: What's driving institutional Bitcoin interest?
A: Inflation hedging needs and search for yield in low-rate environments.
Q: How does Coinbase's model differ from traditional banks?
A: Coinbase serves crypto-native investors, while banks cater to traditional finance clients.
Q: Are crypto ETPs safe for conservative investors?
A: They carry higher volatility than traditional ETPs but offer diversified exposure.
Q: When will NY Mellon's custody platform launch?
A: Scheduled for late 2025 according to bank representatives.
Q: What's the biggest regulatory risk for crypto markets?
A: Potential restrictions on institutional participation or trading mechanisms.