The American investment bank believes that the emergence of more liquid options will attract more institutional-level players to the digital asset space.
The next major event for the crypto market will be the emergence of more liquid options, according to the investment bank Goldman Sachs. Global Head of Cryptocurrency Trading Andrey Kazantsev, during a panel discussion hosted by CoinDesk , explained that the company is seeing a strong demand for hedging with derivatives.
“The next major step that we foresee will be the development of options markets,” Kazantsev said.
He believes that cryptocurrency derivatives are in a "rudimentary state" compared to more traditional markets such as stocks or foreign exchange. At the same time, in recent years, interest in bitcoin options has been actively growing.
According to the latest data from the Skew analytical company, open interest in options is $ 12 billion.In the first half of 2020, this value practically did not exceed $ 2 billion.
“There are more versatile opportunities for hedging risks using options than just using futures alone,” Kazantsev explained.
Over the summer, Gooldman Sachs partnered with Galaxy Digital to expand Bitcoin futures. This was the first time that Goldman Sachs used the services of a counterparty to work with a cryptocurrency.