Goldman Sachs Doesn’t Expect Immediate Surge in BTC Price with Spot Bitcoin ETF Approval
According to Goldman Sachs, the approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) will not result in an immediate surge in the price of Bitcoin. Mathew McDermott, head of Goldman Sachs’ digital asset unit, stated that while the approval may not cause a sudden spike in liquidity and price, it could attract new institutional investors to the crypto market. Goldman Sachs offers cryptocurrency derivatives trading for institutional clients but does not trade the underlying asset itself. McDermott also noted growing interest in crypto derivatives trading due to expectations for ETF approval.
Focus on Digital Assets and Blockchain
McDermott revealed that Goldman Sachs is focused on developing digital assets beyond cryptocurrency. This includes exploring the issuance of blockchain-based tokens for traditional assets like bonds. He highlighted the growing appetite for digital assets and noted the potential for blockchain technology to enhance operational and settlement efficiencies in financial markets. However, McDermott believes that fully replicating financial markets on blockchain is still a distant prospect.
Hot Take: Goldman Sachs Cautions Against Immediate BTC Price Surge
While Goldman Sachs acknowledges the positive impact of spot Bitcoin ETF approval, the bank does not anticipate an immediate surge in BTC prices. However, the approval may attract new institutional investors to the crypto market. Goldman Sachs is also focused on developing digital assets beyond cryptocurrency, exploring opportunities in blockchain-based tokens. The bank sees potential in leveraging blockchain technology for operational and settlement efficiencies in financial markets. Although fully replicating financial markets on blockchain may not be feasible in the near future, the bank expects significant growth in quantum trading on-chain within the next one to two years.