During the last months the crypto market has become wild. Many institutions changed their mind and developed their own products in the field. One of them is Goldman Sachs which revived its plans to open a trading desk for cryptocurrency. In addition the bank will begin dealing with Bitcoin futures.
The decision is significant because it reflects how the biggest names on Wall Street are coming to view cryptocurrency as part of their daily operations. The idea for the trading desk was announced in 2018 but was quietly shelved after the price of Bitcoin started to slump. Today many institutions are interested in the crypto market trying to escape from the upcoming inflation and Goldman Sachs found an opportunity.
Goldman Sachs is not the first institution that offers Bitcoin futures. The giants CME Group Inc, Intercontinental Exchange Inc and Fidelity also have that financial products but Sachs’s decision could influence the market stronger. With that news in mind we can believe that the price of Bitcoin will go up in the near future.
-derivative financial contracts
-contracts obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and set price
-futures are used to hedge the price movement of the underlying asset to help prevent losses from unfavorable price changes