According to Goldman Sachs, the approval of the new Bitcoin spot ETFs will bring greater institutional interest in cryptocurrencies

ETFs attract new institutions

Mathew McDermott, head of Goldman Sachs' digital assets division, recently stated that the imminent approval of Bitcoin spot ETFs will bring new institutional players into the crypto market.

Specifically, according to McDermott, ETFs "will bring new liquidity to the market, also paving the way for pension funds and insurance companies."

As Fox Business reports, McDermott is convinced that the evolution of the market will not be immediate, but 2024 could be the year of a substantial change for the entire cryptocurrency landscape.

A dozen leading financial institutions are already involved in this new scenario. First of all BlackRock and Fidelity, which with the green light from the SEC could guide the sector's enthusiasm towards new goals.

This, also by virtue of new potential commercial applications of blockchain technology, starting with the "tokenization" of assets.

The effects of ETFs in 2024

“We will start to see adoption grow on a large scale,” McDermott said. “As well as the emergence of secondary liquidity on chains, a decisive factor for the new developments of 2024”.

Goldman Sachs itself seems to be focusing precisely on "tokenization", which this year launched its own platform to support this application in collaboration with institutional bodies in Hong Kong, with positive results especially in terms of operating times relating to instruments such as shares of funds, derivatives and private equity.

In 2020, the division led by McDermott had only 4 people. Today, on the contrary, there are more than 70 individuals involved, with new hires planned, a sign that Goldman Sachs' intentions are to aim in this direction.