Goldman Sachs Makes First OTC Cryptocurrency Transaction with Galaxy Digital

Vanderwilt also noted that options trading is "more systemically relevant to the market" than cleared futures or other exchange-based products, and that "at a higher level, this is because of the impact of banks taking risk, and they are implying that there is trust in the maturity of cryptocurrencies to date "

Hedge funds have been seeking derivative exposures to bitcoin, either by placing bets on its price without owning it directly or by hedging existing bitcoin exposures, the two firms said. The market for these instruments is largely controlled by crypto natives including Galaxy, Genesis and GSR Markets.

Max Minton, head of digital assets for Asia Pacific at Goldman Sachs, said in a statement, "We are pleased to have entered into our first cash-settled cryptocurrency options transaction with Galaxy. This is an important development in the evolution of our digital asset capabilities and the broader development of the asset class."