Goldman Sachs begins trading derivative product tied to ETH

Goldman Sachs has expanded its client-facing crypto offering with a derivatives product linked to ether (ETH), according to a statement from London-based Marex Financial. 

The investment bank restarted its crypto operations in 2021 as a flood of institutional money entered the market, the core of its offerings has centered around derivatives tied to cryptocurrencies like bitcoin. 

Now, amid a tumultuous backdrop, Goldman has commenced a derivatives product linked to the price of ether — the possibility of an ETH-linked derivative product was first mooted by the bank in June 2021.

According to a statement made on Monday, this was the first over-the-counter (OTC) non-deliverable forward (NDF) crypto trade on ether by Goldman, with Marex acting as the counterparty. Marex's hedging and investment solutions arm, Marex Solutions, organized the trade.

An NDF is a derivative product that allows the holder to have exposure to an asset without having to hold it. This pays out in cash based on the price of ether at the time of settlement. 

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Adam Morgan is The Block's markets reporter. He has been based in London for the past year, initially freelancing and working for a start-up there before beginning a fellowship at Business Insider. He Tweets @AdamMcMarkets