Goldman Sachs is Now Offering Bitcoin (BTC) Derivatives Products, No Ether (ETH) Contracts For Now

  • Goldman Sachs is now offering bitcoin (BTC) "non-deliverable forward contracts" to a select few clients.
  • The American multinational investment bank is not planning to launch ether-based products yet, despite earlier reports claiming it would.

Giant Wall Street investment bank, Goldman Sachs, has reportedly started offering bitcoin (BTC) derivatives products to its clients. At present, the New York-based financial institution is not planning on offering similar contracts for Ether (ETH) or other major cryptocurrencies.

According to TheBlock, Goldman Sachs will not be rushing to launch new crypto-related products, and its bitcoin non-deliverable forward contracts (“a derivative product tied to futures”) is only available to a select few clients of the bank for now.

With over $900 billion in total assets, Goldman Sachs is currently looking into various options which would allow it to offer custody solutions for cryptocurrencies. There had also been reports earlier this month that the multinational financial services company was “actively exploring the creation" of an ether-based non-deliverable forward contract.

Inaccurate Reports Regarding Ether Futures

This was first reported by the Abacus Journal, however, a source closely following Goldman Sachs’ operations told TheBlock that the bank was not planning to introduce any type of derivatives product for ether (anytime soon).

Moreover, it might not be possible at this time to launch an ether-based product as ether futures contracts are not currently issued by any regulated US-based exchange. The Chicago Board Options Exchange (Cboe) Global Markets had said earlier this year that it would soon be introducing ether futures contracts, however, the exchange holding company has not yet followed through with its plans.

Meanwhile, sources familiar with Goldman Sachs’ internal operations have said that the bank’s customers are not really looking for any new crypto-related products at this time.

Coinbase Receives "Qualified Custodian" Status

Although many institutional investors have begun to take more interest in cryptocurrencies, they have not yet made substantial investments in them due to their volatile nature. Institutional clients are also looking for reliable custodial solutions for digital assets.

San Francisco-based crypto exchange, Coinbase, has been actively working to develop custodial solutions for cryptos. Launched in July of 2018, Coinbase Custody has now become an independent qualified custodian under New York State Banking Law.

Coinbase Custody’s qualified custodian status allows the company to offer regulated custodian services for bitcoin (BTC), ripple (XRP), litecoin (LTC), bitcoin cash (BCH), ether (ETH), and ethereum classic (ETC).

BlackRock CEO: Clients Not Interested In Crypto

Although it appears that crypto firms are trying to meet the demands of institutional clients by introducing products specifically for their use, many would-be investors are trying to better understand crypto assets.

Sources close to Goldman Sachs have said that the institution's clients have been contacting its senior bankers to inquire about how they can “break into the market.”

Interestingly, Larry Fink, the CEO of BlackRock, an American global investment management firm with over $6.2 trillion of assets under management, said in July:

I don’t believe any client has sought out crypto exposure. I’ve not heard from one client who says, ‘I need to be in this.'

Larry Fink

Overstock Committed to Crypto Even After CEO Patrick Byrne’s Exit

Michael LaVere
  • Overstock said it is "absolutely" committed to crypto in the wake of CEO Patrick Byrne's resignation.
  • Company continues to support its high profile tZERO blockchain project. 

Popularo nline retailer Overstock remains committed to cryptocurrency even after the sudden resignation of its long-time CEO and crypto supporter Patrick Byrne. 

Crypto Supporter Patrick Byrne Resigns

On Aug. 22, Byrne announced he would be resigning his position as CEO following a series of comments made the week before about his involvement in FBI investigations and a romantic relationship with a Russian spy. Shares for Overstock plummeted more than 35% following Byrne’s bizarre comments, but rallied in the aftermath of his resignation. 

Despite making a sudden exit, Byrne had established Overstock as one of the most high-profile companies to support bitcoin and cryptocurrency, a legacy that plans to continue even in his absence. 

Newly appointed interim CEO Jonathan Johnson was asked by Yahoo Finance if the company will retain its focus on crypto and blockchain. 

He said, 

Absolutely, yes. The fledgling blockchain business is doing well.

He continued, 

Our team at Medici Ventures, which is the blockchain-focused business, is still working hard, and those different companies in the Medici family are growing at a nice rate.

Earlier in the month, Overstock reported suffering a 23% decrease in revenue for Q2 2019, despite claiming that the blockchain division was performing well. Overstock operates the notable tZERO platform, which was recently opened to retail investors for trading. In addition, the company announced in July that they would be issuing a digital-equivalent of a dividend for shareholders.