- According to McDermott, this change has the potential to greatly increase institutional support.
- The financial industry is on the edge of its seat, waiting for the U.S SEC to approve.
Mathew McDermott, head of digital assets at Goldman Sachs, has highlighted the possible effects on the crypto market of approving spot Bitcoin and ether ETFs. According to McDermott, this change has the potential to greatly increase institutional support for digital currencies.
He claims that the market’s liquidity will be improved and diversified with this approval. He says that the development of institutional-grade products has increased liquidity since it simplifies the investment process for large financial institutions like pension funds and insurance companies in cryptocurrencies.
Measured Change Throughout the Year
McDermott warns against getting hopes up about a dramatic change to the cryptocurrency market just because these ETFs have been greenlit. He instead foresees a more measured change occurring over the course of the next year, subject to approval from relevant regulatory bodies.
The financial industry is on the edge of its seat as big names like BlackRock and several others wait for the U.S SEC to rule on their applications for spot bitcoin ETFs. As a whole, the community is hoping for the best possible outcome, believing that this would pave the way for institutional investors to put more money into bitcoin.
Moreover, according to McDermott, the cryptocurrency sector is expected to have significant growth in the year 2024. Traditional financial institutions’ increased involvement in the cryptocurrency field and the widespread use of blockchain technology in commercial applications are fueling this confidence.
The growth of tokenization marketplaces is an important focus for McDermott. Based on his analysis, the rise of secondary liquidity on-chain is a key factor that will propel these platforms to new heights, particularly among investors.
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- Source: https://thenewscrypto.com/goldman-sachs-foresees-major-boost-post-spot-bitcoin-etf-approval/
