Goldman Sachs Executes Its First Over-The-Counter Crypto Options Trade

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The rising interest in digital assets has left big banks no choice but to enter the space. One of the top banks in the U.S, Goldman Sachs has taken a step into the crypto space by executing its first over-the-counter crypto options trade. This is a step to expand digital-asset offerings to Wall Street investors.

The trade was executed in a derivative tied to Bitcoin’s price that pays out in cash. The transaction was facilitated by Galaxy Digital Holdings Ltd., a crypto financial-services firm. In a statement, Max Minton, Goldman’s Asia Pacific head of digital assets, said:

This is an important development in our digital assets capabilities and for the broader evolution of the asset class.

Using Options to hedge risks

Cryptocurrencies are a risky asset class because of their volatility. This is mainly why institutional investors have been reluctant about entering the space. Options are however, a way of trading them without the need of the crypto itself. Investors use options both to hedge risks and to boost their yields.