Bitcoin
$47,792.74-0.49%
Ethereum
$3,572.06-0.42%
XRP
$1.09-2.64%
Cardano
$2.42-2.46%
Polkadot
$35.74-2.19%
Stellar
$0.328654-3.30%
Dogecoin
$0.240825-2.01%
Chainlink
$29.88-2.55%
Uniswap
$26.22-3.30%
Polygon
$1.38-2.71%
Litecoin
$185.73-1.01%
Bitcoin Cash
$639.77-1.71%
Algorand
$2.06+5.77%
Wrapped Bitcoin
$47,831.14-0.48%
Cosmos
$36.65+10.10%
Filecoin
$84.39-1.68%
The Graph
$0.857989-4.34%
Tron
$0.116344-2.87%
Ethereum Classic
$58.02-1.13%
Aave
$385.58-5.22%
Tezos
$6.80+0.42%
NEO
$50.50-3.42%
EOS
$5.02-1.44%
Monero
$264.01-1.62%
IOTA
$1.52-6.19%
BitTorrent
$0.004042-1.84%
Waves
$30.98+3.41%
Bitcoin SV
$157.03+0.05%
Maker
$2,968.36-2.55%
Dash
$208.05-0.08%
Decred
$144.28-0.11%
Decentraland
$0.842692-2.35%
ICON
$2.02-4.37%
NEM
$0.189780+1.11%
Zcash
$138.55-0.40%
Qtum
$12.68-1.99%
NuCypher
$0.330034-2.58%
Yearn Finance
$34,784.82-3.87%
Bitcoin Gold
$67.66-1.06%
OmiseGO
$8.81-4.60%
Basic Attention Token
$0.777151-1.54%
0x
$1.13+6.83%
Fetch.ai
$0.901394-3.95%
Ren
$1.00-5.67%
Band Protocol
$9.85+2.56%
Bancor
$4.21-1.52%
Siacoin
$0.018849-1.69%
Kava.io
$6.34-0.76%
Nano
$5.66-4.31%
Loopring
$0.473217-3.90%
Storj
$1.42-2.17%
Civic
$0.528783+1.43%
Lisk
$3.61-4.09%
Numeraire
$44.17-2.22%
Orchid
$0.374512-2.89%
PAX Gold
$1,765.14-1.95%
Augur
$26.35-0.81%
Aragon
$6.01-1.50%
Enzyme
$119.18-5.02%
district0x
$0.176192-6.06%
Kyber Network
$1.86-0.53%
SingularDTV
$0.001241-6.91%
Tether
$1.00-0.00%
USD Coin
$1.00-0.00%
Dai
$0.999940-0.04%

Goldman Sachs Offering Bitcoin Derivatives to Investors

The bank will protect itself from the cryptocurrency’s volatility by buying and selling bitcoin futures in block trades.

May 6, 2021 at 7:38 p.m. UTC
Updated Sep 14, 2021 at 12:51 p.m. UTC

Goldman Sachs is offering investors access to non-deliverable forwards (NDFs), a derivative tied to bitcoin’s price that pays out in cash, according to a Bloomberg report. When reached by CoinDesk, the investment bank confirmed the news.

  • The bank will then protect itself from volatility by buying and selling bitcoin futures in block trades through CME Group, using Cumberland DRW as its trading partner.
  • NDFs are futures contracts in which counterparties settle the difference between the negotiated NDF price or rate and the spot price or rate on a notional agreed sum.
  • In January, CME took the prime spot on the list of the biggest bitcoin futures trading platforms, indicating a continued rise in institutional participation. 
  • In March, Goldman Sachs relaunched its cryptocurrency trading desk after a three-year hiatus, with plans to once again support bitcoin futures trading.
  • A source with knowledge told CoinDesk that Goldman quietly began offering bitcoin derivatives contracts to clients last month to test its hedging methods.

UPDATE (May 6, 19:40 UTC): Adds confirmation from Goldman Sachs.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Loading...