Ananya Dutta
Goldman Sachs is planning to clear Bitcoin futures contracts for some clients as soon as the derivatives go live in the next few days as per source from the firm, according to Bloomberg. The popular firm has been helping clients to buy and sell future contracts.
It will now act as an agency and would not participate as a market maker or build inventory in the derivatives as disclosed by a person in the firm who does not want to be identified. The client trades will be cleared on an individual basis.
Tiffany Galvin, a spokesperson for the bank has stated:
Given that this is a new product, as expected we are evaluating the specifications and risk attributes for the Bitcoin futures contracts as part of our standard due diligence process.
Cboe Global Markets is going to start trading Bitcoin futures on Dec.10. It is the largest regulated exchange in the world. Also, yet another popular exchange CME Group will launch it on Dec. 18. Though the products are coming online there are widespread concerns that the risks associated with cryptocurrency derivatives is not fully thought of. Future Industry Association which consists of various bankers, traders and brokers feel that the contracts were rushed through without enough anticipation and preparations with regard to risks involved.
Last month, Goldman Sachs Chief Executive Officer Lloyd Blankfein said that it is quite early for his bank to look into Bitcoin strategies and he does not feel that the digital currency will hold any potentials to store value in future.
Mohith Agadi
Editor
