Goldman Sachs launches first-ever derivative product linked to Ethereum. – Latest News

On Monday, June 13, banking giant Goldman Sachs began trading in ether-indexed derivatives. The asset is designed to provide investors with indirect exposure to the second largest cryptocurrency Ether.

Goldman Sachs executes first ether-linked derivatives transaction.

With a flood of institutional money entering the market in 2021, the investment bank has revitalized its business of crypto. Most of Goldman’s crypto trading options focused on bitcoin-related derivatives. In March, it became the first major U.S. bank to offer an over-the-counter bitcoin options trade.

Goldman Sachs launched derivatives pegged to ether prices in the middle of winter crypto. As a reminder, the company first launched the prospect of indexed derivatives on ETH in June 2021. According to a recently released statement, this was Goldman’s first undeliverable cryptocurrency OTC transaction. (NDF) on Ethereum versus marex. The deal was organized by marex Solutionsthe hedging and investment solutions arm of marex.

A forward contract not available (NDF) is a derivative contract that allows the holder to gain exposure to an asset without owning it. This is paid in cash during settlement based on the price of ether. In addition, Goldman’s actions signal institutional interest in cryptocurrencies. This in a market still paralyzed by the stablecoin TerraUSD (UST) and a gloomy macroeconomic outlook.

Bonus: US regulators fine BlockFi $100 million for securities sale violations.

The crypto face regulatory repressions.

Currently, the overall market is falling to its lowest level since December 2020. The total market value is now less than $1 trillion. Moreover, the market capitalization is less than 450 billion dollars.

The crypto industry’s biggest challenge remains greater regulatory certainty. This means less risk and compliance issues, and even more adoption. The executive order signed by US President Joe Biden emphasizes a coordinated approach by US government agencies. The latter aims to better understand digital assets and provide future legal certainty.

The SEC might be interested in trading platforms crypto and tokens. As Chief Gary said peopleare similar to ordinary securities and must comply with the same laws. In addition, the FCA from the United Kingdom also said it would tighten regulations on cryptocurrencies. Meanwhile, European politicians have just passed a widely rejected bill. The latter would make all anonymous crypto transactions illegal. According to crypto industry players, the move would stifle privacy and innovation.

Noah Perlmanchief operating officer of Gemini Exchange, said governments and regulators recognized they had to do something. So they said they would research or pretend they were working on a plan.

See more: Coinbase lays off nearly 1,100 employees after hiring freeze amid crypto winter.

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Goldman Sachs launches first-ever derivative product linked to Ethereum. – Latest News


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