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. The company sees a strong demand for hedging with derivatives.
The next big step that Crypto-Auditor envisions will be the development of options markets
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 options for hedging risk with options than with futures alone.
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.