Please ensure Javascript is enabled for purposes of website accessibility

Goldman Sachs to Relaunch Trading in Bitcoin Futures

By Rhian Hunt - Mar 1, 2021 at 5:14PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The bank will offer cryptocurrency trading just as it originally planned back in 2018.

Multinational investment bank Goldman Sachs (GS 0.74%) is within a week of reviving its cryptocurrency trading, Reuters reports, with the trading desk to reopen for Bitcoin (BTC -1.22%) futures and nondeliverable forwards (another type of future-oriented derivative) sometime in mid-March. The bank is also showing interest in the official digital currencies under consideration by several countries, along with blockchain tech in general.

The move comes at a time when explosive growth in the value of Bitcoin and several other cryptocurrencies has led several big players in the financial sector to soften their previously hard-line attitude about digital currencies. Mastercard (MA 0.88%) said in a blog post on Feb. 11 "this year Mastercard will start supporting select cryptocurrencies directly on our network," mentioning Bitcoin by name, while asserting it will "be very thoughtful about which assets we support based on our principles for digital currencies." According to Bloomberg, Visa (V 1.16%) has also said it will support cryptocurrencies if they become a "recognized means of exchange."

The Bitcoin emblem superimposed over the image of a smartphone.

Image source: Getty Images.

The popularity and value of Bitcoin has mushroomed since the start of the pandemic. The cryptocurrency gained approximately 300% during 2020, and another 70% in January and February of 2021. The volatility of the digital currency means many skeptics remain, but Goldman Sachs' upcoming restart of its cryptocurrency trading desk suggests it's on the side of the bulls, at least for the time being. 

According to the digital-currency news site CoinDesk, Goldman Sachs aborted its previous foray into cryptocurrency trading back in 2018 over concerns Bitcoin and similar currencies occupied a regulatory gray area. But at the time, the bank said it might reopen the desk at a later time, along with offering nondeliverable forwards on the cryptocurrency, foreshadowing today's news three years ago.


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Goldman Sachs Group, Inc. Stock Quote
The Goldman Sachs Group, Inc.
$299.23 (0.74%) $2.21
Mastercard Incorporated Stock Quote
Mastercard Incorporated
$318.24 (0.88%) $2.76
Visa Inc. Stock Quote
Visa Inc.
$199.18 (1.16%) $2.29
Bitcoin Stock Quote
$19,291.50 (-1.22%) $-238.20

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.