Institutional interest in crypto has long been the interest of investors because of two mouth-watering possibilities (1) the addition of capital into the crypto space and (2) the inclusion of new opportunities that would allow traditional investors to smoothly enter into the crypto market. Non-crypto investors may view the crypto asset as a volatile asset that has a very risky profitability level. However, these opinions may change when more certainty and stability are placed by the support of well-known institutions.
As of the writing of this post, Goldman Sachs had traded a non-deliverable (BTC) option. The other party involved in the transaction was Galaxy Digital. Goldman Sachs is a large and well-known investment banking firm and Galaxy Digital - is a crypto merchant bank. The crypto-related transaction involved in this trade is a major step towards a future where crypto would be naturally integrated into society.
The crypto market is full of various-sized trades, but OTC transactions can be very large. At the corporate level, these could take the form of trades that are well-discussed and well-planned to ensure smooth flowing economics between the two parties involved in the transactions. Each party has its own objectives and various aspects of OTC trades may have to be adjusted (or custom) made to fit these needs.
As with any transaction or agreement, there is an inherent risk that is shared between the two parties. Therefore, an extensive risk analysis has to be performed prior to being involved in a trade facilitated by high-ranking officials within the companies involved in the transaction. For investors wondering why these types of transactions might take "a while", it's because any large investment takes a large amount of consideration.
More successful OTC transactions between firms could mean that the stability of special large-volume trades could be ensured in the future. Does this mean that crypto will reach the moon at this very moment? Probably not. However, it does mean that the possibility of crypto being incorporated into mainstream financial transactions between individuals and companies might increase in the not-to-distant future.
What are your thoughts on the trade transactions between Goldman Sachs and Galaxy Digital?
