Goldman Sachs (GS.US) to launch over-the-counter options trading as Ethereum is popular

Goldman Sachs (GS.US) global head of cryptocurrency trading Andrei Kazantsev said the bank is planning to offer over-the-counter ethereum options trading due to growing client interest in ethereum, Zhitong Finance APP has learned.

Goldman Sachs is planning to launch cash-settled ethereum options “in due course,” Kazantsev said on Tuesday. Last month, Goldman Sachs launched its first over-the-counter bitcoin options trade.

Options are used by cryptocurrency investors to hedge risk or improve yield, while OTC deals are typically larger deals negotiated privately. Ethereum currently has a total market capitalization of $417 billion, making it the second-largest cryptocurrency after Bitcoin.

At Goldman, the conversation among clients is increasingly turning to ethereum, which is now seen as “more of an investable asset class,” said George Lewin-Smith, an associate in Goldman’s digital assets team. According to Kazantsev, Goldman Sachs still does not offer spot trading of cryptocurrencies, but it provides access to European and Canadian exchange-traded products.

Shares of ethereum soared more than 32%, outperforming bitcoin, on March 15, after it passed its last major test before the long-awaited update, "the Merge." This is Ethereum's most significant technical upgrade since its inception in 2015, and the merger will reduce the blockchain's carbon emissions and improve its efficiency and scalability.

Several technical updates before the merger slowed down the new supply of ethereum, pushing up the price of the coin. The update is scheduled to be implemented this year.

Source: Zhitong Financial Network