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Goldman Sachs releases Bitcoin investments to Wall Street

In recent months, the United States banking giant Goldman Sachs Inc. has devoted more attention to Bitcoin.

Goldman Sachs releases Bitcoin investments to Wall Street

Goldman Sachs releases Bitcoin investments to Wall Street

After “repudiating” Bitcoin as a form of investment in May 2020, the financial institution started to reconsider its position on cryptocurrency.

In early March, for example, the bank restarted its Bitcoin and other cryptocurrency trading desk.

At the end of the same month, Goldman Sachs said that they would launch their first investment vehicles for cryptocurrencies in the second quarter of this year.

Now, amid strong demand for Bitcoin, the institution has started offering its customers non-deliverable forwards. It is a derivative that is linked to the price of Bitcoin.

The derivatives in question are contracts paid in cash between two parties. They undertake to settle on a certain date the difference between the spot price and the contracted price.

In other words, NDFs allow customers to speculate on the price of Bitcoin.

The information was published on Thursday (6) by Bloomberg columnist Matthew Leising.

Read more:

  • SEC: It would be a foolish thing for the government to ban bitcoin
  • George Soros started to invest in Bitcoin companies
  • New York is preparing laws to ban Bitcoin mining for 3 years
  • According to the report, the products will be protected with the help of CME Group’s Bitcoin futures.

    In addition, the bank’s commercial partner in the deal will be the crypto company Cumberlad DRW:

    “Institutional demand continues to grow significantly in this space. And being able to work with partners like Cumberland will help us expand our capabilities,” said Max Minton, head of digital assets at Goldman Sachs.

    The executive also stressed that the new offer will open the way for the bank to develop its resources in cryptocurrencies with cash settlement.

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