CJ - Cryptocurrency Specialist
The second-largest cryptocurrency investment asset has increased client demand for options; as a result, Goldman Sachs Group aims to launch over the counter (OTC) Ether option trading "in due time."
A growing number of Goldman Sachs clients are switching to Ether as the Ethereum development team gets ready to finish the network's transition to the Proof of Stake consensus mechanism this summer. Ether has developed into "more of an investable asset class" than market leader Bitcoin.
Assist in predicting price direction
Options are a type of financial derivative that provide traders the option, but not the obligation, to buy or sell assets at a defined price for a specified amount of time. By acquiring an option, investors can defer the purchase or sale of an asset. At the same time, they may make a significant profit without making a sizable financial commitment.
Options have lately been one of the most popular types of investing, particularly among retail traders, due to their increased accessibility and variety of features. Daily options trading quantities, for example, climbed by 35% last year compared to prior years.
Options data, on the other hand, may be used to forecast the market's or a single asset's future direction.
Untraceable Movements Become Even More Untraceable
With more than 3 million clients, Goldman Sachs is one of the biggest investment banks in the world. Each of these clients must have at least $10 million in investable assets in order to open an account.
This means that capital inflows into Ethereum options transactions are likely to be substantial.
Cryptocurrency OTC deals, on the other hand, alter a lot in this setting. Over the counter (OTC) trades are private transactions that take place outside of exchanges. To put it another way, they operate as direct exchanges between the two parties, with no one else being aware of or tracking them.
Given this, there is little to no likelihood that ETH option trade volumes will be reflected on data tracking and cryptocurrency exchange platforms. Because of this, whales will be secretly moving assets. The first OTC Bitcoin options trading program was introduced by Goldman Sachs in May, and platforms in Canada and Europe are already offering crypto ETPs. The bank still opposes spot Bitcoin trading despite this.