Investment bank Goldman Sachs is reportedly offering wealth investors the opportunity to bet on Bitcoin’s future price.
According to Bloomberg, the bank is already offering non-deliverable forwards that are essentially short-term future contracts which pay cash to any investor who accurately pinpoints the currency’s price.
At the beginning of the contract an estimated value is set for a given date, and once that date is due, the winning party takes the difference between the actual price and contractual one.
It is a good way to for Goldman Sachs to not just capitalize on Bitcoin as the best performing asset of the last decade by introducing clients to it, but also tapping in to its volatility which has long been its least appealing aspect.
Goldman Sachs has already traded Bitcoin futures in 2021, but as per the report, the investment firm will be able to scale up its offer and target larger clients.
Goldman Sachs previously confirmed in an earnings call that it’s keeping a close eye on Bitcoin, but cautioned that there was still no clear-cut regulation to bolster its appeal. The investment bank noted that, for example, it could not own nor trade Bitcoin as a principal.
The most recent announcement of non-deliverable forwards follows a commitment from early in April when the bank said it would be bringing Bitcoin to wealth clients. Consumer interest in Bitcoin has skyrocketed as well.