Goldman Sachs experts expect institutional investment in cryptocurrencies to expand with the approval of spot Bitcoin ETFs.

Approval of spot Bitcoin ETF will boost institutional investment in cryptocurrencies, Goldman Sachs expert says The post appeared first on Coinpedia Fintech News

With the Bitcoin ETF decision less than a week away, in an interview with Fox Business, Mathew McDermott, head of digital assets at Goldman Sachs, shed light on the significant developments witnessed in the digital asset space over the past year.

A notable trend is the increased participation of traditional financial institutions, resulting in a pivotal change in the industry landscape.

What is McDermott’s opinion?

“Digital assets can create efficiencies, eliminate risk and have a positive impact on business models,” McDermott emphasized. He highlighted that growing awareness of the potential benefits of digital assets for traditional financial operations is the reason for the surge in participation. Increasing regulatory clarity around the world has created a more favorable climate for research and adoption.

“The digital asset market has matured to a point where there is broad acceptance that the technology works,” McDermott said. He also said, “Scaling and creating scale is where you start to see the commercial value proposition come to fruition.”

What are the possible futures?

McDermott predicts that the emergence of the market will be a significant development in the coming year. “Over the next year, the marketplace will start to evolve, especially on the purchasing side,” he said.

Anticipating increased adoption, especially among buy-side investors, McDermott expects this to be driven by building secondary liquidity on-chain.

“The emergence of on-chain secondary liquidity is a key driver of scale adoption,” he emphasized.

McDermott also predicts that collateral mobility will improve significantly over the next year. “There are still a lot of inefficiencies that exist due to features in the system that are decades old,” he explained.

By solving problems such as ‘storage fragmentation’ and ‘payment synchronization’, this technology will streamline operations and enable more efficient use of capital and liquidity.

“As you play it through, this is what I’m totally looking forward to next year…,” McDermott said.

McDermott predicts a significant increase in adoption on the buy side in 2023, while also predicting a focus on more traditional asset classes in 2024.

“We expect to see a significant increase in adoption on the purchasing side next year,” he asserted.

as a result…

The financial industry is undergoing significant change as digital assets are increasingly integrated into the operations of traditional institutions. These changes are expected to revolutionize the industrial environment and bring promising developments.