Financial services company Goldman Sachs has announced its intent to launch Bitcoin futures contracts in the near future. Goldman Sachs launching Bitcoin futures contracts is a pretty big deal for the financial world. What made the investment firm take the plunge?
New York Times reporter Nathaniel Popper wrote that Goldman Sachs plans to use its own money to trade Bitcoin futures contracts for its clients. The investment firm will also offer its clients its very own bitcoin futures products.
“[Goldman Sachs] will also create its own, more flexible version of a future, known as a non-deliverable forward, which it will offer to clients,” continued Popper.
An exact date has yet to be set, but Goldman Sachs said it will likely be occurring within the next few weeks.
Goldman Sachs isn’t the first big gun to launch a Bitcoin futures service. Back in December, Cboe Global Markets and CME Group both launched Bitcoin futures trading, on December 10th and December 17th respectively. Although both launches were a resounding success, the Bitcoin futures trading may have also, in part, led to the subsequent Bitcoin crash shortly after.
Bitcoin has yet to fully recover from its crash, the coin now selling at $9,416.12 according to CoinMarketCap data (which is approximately $10,000 below its all-time high selling price achieved on December 17th).
So why does Goldman Sachs want to get in on the Bitcoin futures action?
One of the Goldman executives in charge of creating the futures operation, Rana Yared, told New York Times that “the bank had received inquiries from hedge funds, as well as endowments and foundations that received virtual currency donations from newly minted bitcoin millionaires and didn’t know how to handle them.”
Yared continued, “It resonates with us when a client says, ‘I want to hold bitcoin or bitcoin futures because I think it is an alternate store of value.’” Evidently, there were quite a few clients who felt this and so, ultimately, the decision to start Bitcoin futures contracts was approved by the Goldman board of directors.
What effect do you think Goldman Sachs launching Bitcoin futures contracts will have on the market? Will it help to move Bitcoin’s price up? Or do you think another crash will happen?
Featured image: Fortune