Goldman Sachs moves to let investors bet on Bitcoin's price with new derivatives

posted about 1 month ago
Goldman Sachs has moved to offer derivatives products tied to the price of bitcoin to its clients. The derivatives in question are non-deliverable forwards, which are contracts between two parties that agree to settle at a certain date the difference between the spot price and the contracted price. In essence, these NDFs allow Goldman clients to speculate on the price of bitcoin.

The contracts pay in cash, and on Goldman's side, the firm "protects itself from the digital currency's famous volatility by buying Bitcoin futures in block trades on CME Group Inc. using Cumberland DRW as its trading partner."
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