Goldman Sachs Foresees Digital Asset Evolution

Regulation and Adoption Key to Maturity

The landscape of digital assets is poised for significant change in 2024, according to Goldman Sachs' insights. The bank's digital assets leader, Matthew McDermott, highlights a shift in the blockchain arena. He notes the rising scale of blockchain applications in businesses, especially in light of a possible Bitcoin ETF.

McDermott emphasizes the transformative power of blockchains at scale. He foresees banks' increasing engagement with tokenized assets, potentially enhancing market liquidity.

Efficiency Through Blockchain

McDermott points out the inefficiencies in current collateral systems, relics of decades-old technology. Adoption of blockchain, he argues, offers immediate and forward-looking commercial benefits.

Tokenization, as McDermott envisages, will initially focus on traditional assets. These assets, once digitized, offer advantages in liquidity and transparency, particularly for less common assets.

WAX's Perspective Aligns

William Quigley, co-founder of blockchain WAX, concurs with McDermott's views. Speaking with BeInCrypto, Quigley sees the tokenization industry carving its niche by 2024 and reaching maturity by 2030.

Gradual Growth of Bitcoin ETFs

The narrative around Bitcoin ETFs is cautiously optimistic. McDermott believes their approval will invite more significant investments, enhancing Bitcoin's liquidity. However, he predicts a gradual uptick in growth post-approval.

The SEC's decision on ARK Invest's ETF application is pending, with a deadline of January 10, 2024. The outcome could set a precedent for the thirteen applications in the queue, fostering fair competition.

ETF Application Developments

Deadline pressures are mounting as applicants had until December 29, 2023, to revise their S-1 filings. Bloomberg's ETF analyst, Eric Balchunas, suggests that firms will likely align their ETF share creation and redemption processes with ARK's deadline.