The head of the global crypto trading department at Goldman Sachs said that the bank plans to include leading over-the-counter options for Ethereum altcoins in its crypto products. Here are the details…
Goldman Sachs to Lead Altcoin Development Project
It is reported that the bank’s customers’ interest in ETH has increased, especially after recent network updates. During the webinar, Andrey Kazantsev said that over-the-counter options trading on Ethereum will take place soon, given that Goldman already offers over-the-counter options trading on bitcoin. Bloomberg states that the bank’s clients are turning their attention to ETH and increasingly view it as an investment asset. It was also noted that Ethereum had a successful 2022, when the price of the asset increased by more than 30 percent since mid-March.
Meanwhile, several key technical developments are blamed for this increase, including the “merger” that occurred in the test network. More updates are expected throughout the year. Consolidation will take place in the main network next year, which will make the network faster and cheaper. This will be vital for the healthy growth of the Ethereum network as the use of DeFi increases. As Somanews previously reported, Goldman Sachs has also filed an application for a DeFi ETF with the U.S. Securities and Exchange Commission.
What does over-the-counter trading mean?
Over-the-counter transactions are usually associated with large transactions and are intended for institutional traders. According to experts, the bank’s foray into over-the-counter cryptocurrency options underscores the growing interest in cryptocurrency from large trading companies that make up the majority of Goldman’s clients. The bank does not offer spot cryptocurrency trading, but offers access to cryptocurrency ETFs and options trading. Institutional traders often prefer to invest in cryptocurrencies through a broker rather than holding tokens directly.
Meanwhile, ETH was optimistic in terms of trading before it was upgraded to ETH 2.0. It is expected that staking, low power consumption and computing requirements will make the token much more affordable. According to Arthur Hayes, co-founder of the BitMEX cryptocurrency exchange, these features could potentially raise the price of ETH above $10,000 by the end of the year. At the time of writing, ETH was trading at $3,341, which is 5.2% lower.