This article briefly:
• Matthew McDermott of Goldman Sachs said institutions will mature digital assets by expanding proprietary blockchains by 2024.
• McDermott believes that traditional assets will be tokenized before more exotic assets, both of which will simplify settlement.
•He added that if approved in 2024, the Bitcoin exchange-traded fund would gradually grow and increase the overall liquidity of Bitcoin.
Goldman Sachs predicts that institutional adoption and regulation of blockchain will allow digital assets to mature by 2024. Matthew McDermott, the bank's head of digital assets, said that as the market waits for bitcoin to be traded on exchanges, businesses that have experienced the efficiency of blockchain are now scaling up to maximize business opportunity funds (ETFs).
McDermott said blockchain’s positive impact on businesses will only be realized at scale. He expects the reabsorption of banks to enhance liquidity in the tokenized asset market.
Goldman Sachs predicts the future of digital assets
According to McDermott,
“When you look at collateralized liquidity, there are still a lot of inefficiencies that are a function of the system that’s decades old. When you really start to see people adopt the technology, they’ll recognize that not only can you see a business proposition about the long term, you can actually see it today.”
McDermott predicts that traditional assets will be tokenized before more exotic assets. Less common assets will benefit the most in terms of liquidity, pricing visibility and transparency.
His sentiments echo those of William Quigley, co-founder of collectibles-focused blockchain WAX, who told CoinDesk he expects the tokenization industry to establish a niche by 2024 and then mature by 2030.
Bitcoin ETFs will grow slowly
Meanwhile, McDermott believes that the approval of a Bitcoin exchange-traded fund (ETF) will attract investments from pension funds and insurance companies, thereby improving Bitcoin's overall liquidity. The U.S. Securities and Exchange Commission (SEC) must rule on ARK Invest's ETF application by January 10, 2024. Analysts expect the SEC to approve all 13 applications and ARK to ensure fair competition.
McDermott predicts that bitcoin ETFs likely won’t grow immediately after approval. Instead, they will gain traction over time.
Applicants have until Dec. 29, 2023 to amend their S-1 filings with the SEC. Bloomberg ETF analyst Eric Balchunas predicts many companies will only list authorized entities that can create and redeem ETF shares closer to ARK’s deadline.
Do you have anything to say about Goldman Sachs’ views on the future of digital assets or anything else? #高盛 #比特币ETF
