Goldman Sachs restarts cryptocurrency trading and will begin dealing bitcoin futures for clients next week, report says

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The Goldman Sachs logo is seen displayed on an Android mobile phone Omar Marques/SOPA Images/LightRocket via Getty Images

Goldman Sachs has restarted its cryptocurrency trading desk amid a boom in bitcoin, which saw its price rise 65% year-to-date and 470% in the past year alone, Reuters first reported. The investment bank will start dealing bitcoin futures and non-deliverable forwards beginning next week.  

The desk, which will be part of the US Global Markets division, is part of the bank’s efforts to keep up with the rapidly evolving digital assets sector. This includes blockchain technology and central bank digital currencies, Reuters said.

Goldman Sachs, which first set up a cryptocurrency desk in 2018, is also reportedly exploring a bitcoin exchange traded fund, the Reuters report said.

The price of bitcoin has been rising rapidly in recent weeks, smashing above the $US58,000 ($74,924) level and breaching the $US1 ($1) trillion market capitalization in February before giving up gains. The asset was trading higher by 10.5% on Monday, at $US48,423 ($62,553). 

Bitcoin has also been embraced by major institutions from Tesla to Mastercard. Despite criticism from crypto bears, many investors see bitcoin as a hedge of inflation, while others see its potential to become a mainstream form of payment in the future.