Goldman Sachs Sees Hedge Fund Clients Flock to Bitcoin, Ether Products Amid ETF Buzz

Goldman Sachs' Asian head reveals a surge in interest for cryptocurrency products from its hedge fund clients, with Bitcoin-related products dominating the focus. The recent US approval of spot Bitcoin ETFs has fueled this interest, but ether spot ETFs could potentially reshape the landscape if approved. Goldman Sachs is also considering investing in crypto bankruptcy claims, signaling a more active role in the digital assets arena.

Goldman Sachs Witnesses Surge in Cryptocurrency Interest as Hedge Fund Clients Flock to Bitcoin and Ether Products

In a recent interview with Bloomberg, Max Minton, head of digital assets for Asia Pacific at Goldman Sachs, revealed a significant increase in interest in cryptocurrency-related products among the firm's hedge fund clients. This surge in interest has been attributed to the recent approval of spot Bitcoin exchange-traded funds (ETFs) in the United States.

"Many of our largest clients are active or considering becoming active" in cryptocurrency, said Minton. He emphasized that the focus remains primarily on bitcoin-related products, but this could shift if ether spot ETFs gain approval in the United States.

Goldman Sachs' interest in the cryptocurrency space extends beyond the surge in client interest. The firm is also considering investing in crypto bankruptcy claims, as stated by Mathew McDermott, its global head of digital assets, at the Digital Asset Summit in London last week.

McDermott highlighted the launch of Goldman Sachs' crypto desk in 2021, acknowledging that while the previous year presented challenges, there has been a significant transformation this year in terms of supply, volumes, and price action.

Recent data from BitMEX Research indicates that ten spot bitcoin ETFs in the United States experienced total outflows of $888 million in the past week, with Grayscale GBTC recording a record outflow on March 18. The cumulative volume of spot bitcoin ETFs has increased by approximately $22 billion over the past week, reaching $164 billion as of March 22, according to data from The Block.

It is important to note that The Block, the source of the data on ETF volumes, is an independent media outlet that provides news, research, and data on the cryptocurrency industry. Since November 2023, Foresight Ventures has been a majority investor in The Block and invests in other companies within the cryptocurrency space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block maintains its independent operations and provides objective, impactful, and relevant information about the cryptocurrency industry.