Goldman Sachs Predicts Breakout Year For Crypto with Bitcoin, Ether ETF

Kelvin Munene Murithi
December 29, 2023
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Bitcoin ETF digital asset Inflow

Goldman Sachs’ head of digital assets, Mathew McDermott, recently underscored the potential impact of approving spot bitcoin and ether exchange-traded funds (ETFs) on the cryptocurrency market. McDermott said this move could significantly bolster institutional interest in digital currencies. 

He asserts that such approval would enhance and diversify market liquidity. This liquidity boost, he explains, stems from the creation of institutional-grade products that allow major financial players, like pension funds and insurance companies, to invest in cryptocurrencies without the complexities of handling the assets directly.

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Gradual Market Transformation Expected

McDermott tempers expectations of an immediate overhaul in the crypto landscape following the approval of these ETFs. Instead, he envisions a more gradual evolution over the next year, contingent on regulatory green-lighting. 

The anticipation in the financial sector is palpable as major players like BlackRock and Fidelity await the U.S. Securities and Exchange Commission’s decision on their spot bitcoin ETF applications. The general sentiment leans towards optimism, hoping for a positive outcome that could open new doors for institutional investments in bitcoin.

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2024: A Pivotal Year for Crypto and Tokenization

Looking ahead, McDermott anticipates substantial growth in the crypto market in 2024. This optimism is fueled by the increasing integration of blockchain technology in commercial applications and the growing participation of traditional financial institutions in the crypto space. 

A key area of interest for McDermott is the development of tokenization marketplaces. He predicts these platforms will gain considerable traction, especially among investors, due to the emergence of secondary liquidity on-chain, which he identifies as a crucial enabler for market expansion.

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Goldman Sachs’ Foray into Tokenization

Earlier in the year, Goldman Sachs launched its tokenization platform, GS DAP. This private blockchain played a significant role in Hong Kong’s sale of $102 million in tokenized green bonds, markedly reducing settlement times. 

McDermott hinted at the platform’s potential applications in various asset classes, including derivatives and private equity. Under his leadership, Goldman’s digital asset team has expanded from a modest four members in 2020 to a robust 70-person unit, with plans for further growth as the market dictates.

Read Also: VanEck Ignites Bitcoin ETF Race with Bold ‘Born to Bitcoin’ Ad

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.