By
Bena Ilyas
April 30th, 2024
Goldman Sachs’ Head of Digital Assets Mathew McDermott has emphasized the potential impact of approving spot Bitcoin and Ether ETFs on the cryptocurrency market.
Goldman Sachs is reportedly in discussions with BlackRock and Grayscale Investments to potentially play a crucial role in their proposed spot Bitcoin exchange-traded funds (ETFs), according to sources cited by CoinDesk.
If granted approval, Goldman Sachs could act as an authorized participant for BlackRock and Grayscale’s spot bitcoin ETFs, enabling the financial giant to purchase and redeem shares directly from the ETF, as outlined by the Securities and Exchange Commission (SEC).
The SEC is likely to make a decision on spot bitcoin ETFs between January 8 and January 10, and Goldman Sachs’ role as an authorized participant would also require regulatory approval. The growing interest from established financial institutions in this crypto-based financial instrument suggests a potential approval in the future.
During the last month of December 2023, BlackRock revised its filing for a spot Bitcoin ETF with the SEC. The giant also incorporated Jane Street Capital and JPMorgan as potential authorized participants. This development will be a positive indication of the potential approval of spot Bitcoin ETFs.
Goldman Sachs: 2024 Could Be Breakout Year for Crypto
Goldman Sachs’ Head of Digital Assets Mathew McDermott has emphasized the potential impact of approving spot Bitcoin and Ether exchange-traded funds (ETFs) on the cryptocurrency market. McDermott suggests that such approval could significantly boost institutional interest in digital currencies.
According to McDermott, the approval of spot Bitcoin and Ether ETFs would enhance market liquidity by creating institutional-grade products. These products would enable major financial players, such as pension funds and insurance companies, to invest in cryptocurrencies without dealing with the complexities of managing the assets directly.
Looking forward, McDermott envisions substantial growth in the crypto market in 2024. He attributes this optimism to the increasing integration of blockchain technology in commercial applications and the growing involvement of traditional financial institutions in the crypto space.
A focal point for McDermott is the development of tokenization marketplaces, which he predicts will gain significant traction, especially among investors. He identifies the emergence of secondary liquidity on-chain as a crucial factor enabling market expansion.