On June 18, Goldman Sachs began trading Bitcoin futures through Mike Novogratz’s Galaxy Digital network, paving the way for banking institutions. Galaxy Digital announced the agreement as part of Goldman Sachs’ crypto investment strategy.

Goldman Sachs has taken a step further in its efforts to assist hedge funds and other large institutional clients in betting on bitcoin.

According to CNBC, the bank has started trading bitcoin futures in partnership with Galaxy Digital, the crypto merchant bank founded by Mike Novogratz.

Under growing demand from institutional clients, in March Goldman Sachs reopened its crypto trading desk after a three-year hiatus. The desk is part of the bank’s U.S. Global Markets division.

According to Galaxy co-president Damien Vanderwilt, this is the first time Goldman has employed a digital assets firm as a counterparty since the investment bank launched its bitcoin desk last month.

The recent moves by Goldman Sachs, the world’s largest investment bank, might have effect on Wall Street and beyond, as banks increasingly face pressure from clients who seek bitcoin exposure. Goldman is effectively providing other banks permission to begin trading cryptocurrencies by being the first large U.S. bank to do so, according to Vanderwilt, a former Goldman partner who joined Galaxy last year.

“There’s a whole dynamic with the major banks that I’ve seen time and time again: safety in numbers,” Vanderwilt said this week in an interview. “Once one bank is out there doing this, the other banks will have [fear of missing out] and they’ll get on-boarded because their clients have been asking for it.”

Galaxy has made many high-profile moves in recent months, including a succession of purchases of digital-asset management companies. Vision Hill and BitGo, the latter of which Galaxy purchased for $1.2 billion in May, are among the acquisitions.

Galaxy’s acquisitions have more than doubled the firm’s comprehensive income since 2020, and are part of its pathway to a U.S. listing later this year.

Related article | Goldman Sachs To Start Trading Ethereum Options And Futures

According to multiple sources, Goldman Sachs is the first bank in the United States to actively trade cryptocurrencies. Bitcoin and cryptocurrency are viewed by many fiat banking institutions as a financial bubble. After more than a decade of existence, many financial experts feel crypto is still a hoax.

However, as a result of the new Goldman-Galaxy cooperation, consumers will put pressure on banks to expose their customers to cryptocurrency. Banking organizations will be obligated to gratify their clients as the pressure to give bitcoin intensifies.

As a result, as more financial institutions back the currency, global acceptance will rise. As a result, Bitcoin will be available in even the most remote corners of the market. As a result, as Bitcoin’s adoption grows, volatility issues will diminish and eventually disappear.

Related article | Galaxy Digital CEO: Bitcoin Dips Should Be Bought Despite BitMEX News

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