Goldman Sachs expands into bitcoin futures with Galaxy Digital

Goldman Sachs (GS) is now trading bitcoin futures with Mike Novogratz's crypto merchant bank, Galaxy Digital (BRPHF), in response to increasing pressure from clients who want bitcoin (BTC-USD) exposure, according to CNBC.Galaxy will serve as Goldman's liquidity provider for bitcoin futures buy/sell orders on CME Group.Other banks are likely to follow Goldman's lead because "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," Damien Vanderwilt, co-president of Galaxy Digital, said in an interview last week.As more banks adopt bitcoin trading there will be less volatility in the price of bitcoin, as institutional and retail flows accelerate.Vanderwilt, a former Goldman Sachs trading executive, also notes that "the highly regulated banking industry can't handle bitcoin directly"; however, banks will be able to offer bitcoin trading to clients by using derivatives, which includes arbitrage