Goldman Sachs Hedge Fund Clients Are Turning to Crypto

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According to reports, Goldman Sachs’ clients have begun re-entering the crypto market this year, motivated by the SEC’s approval of spot Bitcoin exchange-traded funds.

Goldman Asia Pacific’s head of digital assets, Max Minton, stated that many of their largest clients have recently become active in the sector or are considering becoming active.

This renewed interest can be attributed partially to the recognition of Bitcoin as a legitimate asset by the approval of ten new ETFs in the US in January.

Minton also stated that most of the increased demand is coming from existing clients through options and futures offerings, with hedge funds showing the most interest. Despite not offering spot crypto products, Goldman’s first crypto trading desk, launched in 2021, only deals in derivatives such as Bitcoin and Ether options and futures.

However, Minton reports a recent increase in interest and activity from clients, indicating a pickup in demand for such products. Goldman Sachs reported record assets under management of $2.8 trillion at the end of 2020.