Goldman Sachs Taps Galaxy Digital to Offer Bitcoin Futures Trades

Leading global investment bank, Goldman Sachs, has entered a strategic partnership with cryptocurrency management firm, Galaxy Digital, to offer clients Bitcoin futures trading products.

Damien Vanderwilt, co-president of Galaxy Digital disclosed the partnership during an interview with CNBC. He noted that Galaxy Digital will serve as a liquidity provider for Goldman Sachs’ Bitcoin futures block trades.

According to him, Goldman partnered Galaxy due to a regulatory policy that prevents international investment banks from directly handling Bitcoin. However, Galaxy digital would serve as a gateway for Goldman to the crypto space.

Galaxy Digital is a cryptocurrency management firm founded by Mike Novogratz. It currently operates over 300 institutional trading counterparties and will give Goldman access to them.

The partnership which is a first of its kind was entered due to institutional clients growing interest in Bitcoin. As a result, Goldman Sachs tapped Galaxy to help hedge funds and other big institutional clients invest in Bitcoin.

However, the new development is noted to have open the path for other investment banks to explore digital assets. “[…]Once one bank is out there doing this, the other banks will have [fear of missing out] and they’ll get on-boarded because their clients have been asking for it,” Vanderwilt said.

In addition to onboarding more international investment banks, Vanderwilt noted that Goldman Sachs’s move will give Bitcoin more certification, stating it will help to reduce price volatility. Last month, in a memo Goldman previously disclosed that it would sign on “new liquidity providers to help us in expanding our offering.”

Goldman to Provide Clients Secure Access to Digital Assets

Max Minton, head of digital assets for Goldman’s Asia-Pacific region in a statement expressed delight with the new move. He noted that the bank was pleased with Galaxy due to its vast range of liquidity venues and differentiated derivatives capabilities.

He explained that the move was entered to provide clients with secure access to any assets they want to trade.  “In 2021, this now includes crypto, and we are pleased to have found a partner with a broad range of liquidity venues and differentiated derivatives capabilities spanning the cryptocurrency ecosystem,” he said.

Notably, the new partnership is among Galaxy digital recent activities in the crypto space. The digital assets management firm recently announced its acquisition of BitGo which is expected to close in Q4 of this year.

Galaxy Digital earlier disclosed it had entered the Bitcoin exchange-traded fund dispute with the U.S. Securities Exchange Commission (SEC). This occurred mid-April after submitted its Form S-1 registration.

BTC Price

Despite the announcement, Bitcoin’s price was still down by 0.9%. BTC was trading at $36,195.60, with a market cap of $678,257,528,614 and a 24-hour trading volume of $32,638,851,728.

Galaxy Digital
Source: TradingView

Additionally, Galaxy Digital (BRPHF) closed the week at $17.29 after losing approximately 6% on Friday, while Goldman Sachs (GS) closed the week at $348.83 after losing approximately 4% on Friday.

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