Goldman Sachs says that the next frontier in the crypto space would be the more liquid markets as traditional financial firms join the industry.
The Multinational investment bank’s global head of crypto trading, Andrei Kazantsev, said that they see the next step as the creation of the options markets.
Kazantsev maintains that the crypto derivatives are at the initial growth phase compared to the equities and the foreign exchange markets. The executive notes that bitcoin option markets are leading lately with faster growth.
The value of the outstanding contracts in bitcoin currently stands at $12 billion, compared to less than $2 billion in the first half of last year.
Options are financial instruments called derivatives useful to hedge against risks or to increase exposure in the underlying asset, which in our case is BTC.
Goldman Sachs re-introduced Crypto trading at the start of the year to offer principal liquidity for CME Group’s crypto-focused futures and OTC equivalent.