Goldman Sachs to resume Bitcoin futures trading in mid-March

In another bullish signal for Bitcoin, Goldman Sachs is set to reopen its crypto trading desk. The company did not specify whether the desk will also trade Ethereum.

Goldman Sachs has revived plans to open a cryptocurrency trading desk and will begin trading bitcoin futures contracts in mid-March, a person close to the banking giant told Decrypt on Monday.

The decision, first reported by Reuters, is significant because it reflects how Wall Street's biggest names are viewing cryptocurrencies as part of their daily business. It's also notable because Goldman Sachs announced plans to set up a crypto trading desk in 2018, but then quietly shelved the idea amid a slide in bitcoin prices later that year.

Futures contracts oblige the buyer to purchase an asset at a given price in the future. Their function is to increase liquidity in a particular market and can be used for both speculation and hedging against price fluctuations.

Goldman Sachs would not be the first to offer bitcoin futures contracts, with other financial giants such as CME Group Inc, Intercontinental Exchange Inc and Fidelity already trading them for some time, but the company’s decision is likely to spark further interest in the crypto market and is a bullish signal for bitcoin.

Goldman's move into bitcoin comes as the original cryptocurrency appears to be recovering from a brief slump last week. Bitcoin's price fell nearly 25% from an all-time high of around $58,000 to around $43,500. As of midday Monday, bitcoin was trading near $49,000.