Goldman Sachs’ prime brokerage unit is clearing and settling cryptocurrency exchange-traded products (ETPs) for some hedge fund clients in Europe, according to two sources with knowledge of the matter.
The services are currently being offered to a limited number of clients, and the bank has been reviewing the matter internally as it eyes rolling out these services to a wider number of customers, the sources said.
Goldman Sachs isn’t the only bank making such a move. Bank of America, as reported by CoinDesk earlier in the week, has also been offering the clearing and settlement of cryptocurrency ETPs for hedge funds, as the adoption of crypto by institutions gathers pace.
Bank of America has also approved the trading of bitcoin futures for some clients and is clearing cash-settled contracts, CoinDesk reported last week.
Crypto ETPs are traded on an exchange, much like equities and ETFs, and track the performance of an underlying asset. Their popularity has been growing as they allow clients to invest in crypto without having to invest in the underlying digital assets themselves.
In June, ETC Group launched the first bitcoin ETP in the U.K. on the Aquis Exchange in London. There has also been an increasing number of cryptocurrency ETPs being listed on Switzerland’s SIX Exchange and on Germany’s Deutsche Boerse.
Almost half of family offices that do business with Goldman Sachs want exposure to cryptocurrencies, Bloomberg reported this week.
Goldman Sachs declined to comment.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.