Goldman Sachs calls Bitcoin ETFs in the US a “surprising success” – DiarioBitcoin
By Hannah Perez
The Goldman Sachs digital asset executive shared remarks at the Consensus conference. He was more skeptical about ETFs of other cryptocurrencies like Solana and XRP
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- The arrival of Bitcoin ETFs in January marked a “major psychological turning point,” according to Goldman Sachs
- Goldman Sachs executive talks about Wall Street’s involvement in crypto and the Ethereum ETF
- He showed less confidence that there will be ETFs of other cryptocurrencies beyond Bitcoin and Ethereum
The cryptocurrency landscape in the United States is taking a turn this year as the new asset class is integrated into the traditional financial industry with new regulated investment products.
At the beginning of the year, the US Securities and Exchange Commission (SEC) approved a batch of exchange-traded funds (ETFs) of Bitcoin in cash, which marked a “major psychological turning point” for the industry in the opinion of an executive Goldman Sachs.
“The Bitcoin ETF Has Obviously Been a Surprising Success“, held Mathew McDermott, Global Head of Cryptocurrencies at Goldman Sachson stage at the digital currency conference Consensusorganized by CoinDesk in Austin, Texas.
ETFs are a type of traditional investment vehicle that trade on stock exchanges and provide investors with direct exposure to the underlying assets. In this case, it exposes them directly to the prices of Bitcoin without the need for investors to personally purchase or hold the cryptocurrency.
Optimistic about ETFs Bitcoin
McDermott had anticipated before January’s historic approval that ETFs Bitcoin spot payments would increase the appetite of institutional investors for the largest digital currency. His view was not wrong: the fund group has generated inflows of more than $13 billion since its debut, with high-profile banks actively investing.
It has not been revealed that Goldman Sachs have positions in ETFs Bitcoin spot in the US, unlike its peers like JPMorgan, Morgan Stanley and Wells Fargoalthough the bank does appear as a key actor in several of these funds.
Notably, the Wall Street giant is an authorized participant (AP) of the ETF Bitcoin of BlackRock, IBIT, which was recently crowned the largest of the group with holdings worth USD $20 billion. IBIT is also one of the world’s fastest growing ETFs, with cumulative inflows reaching $16 billion.
Skeptical of the possibility of ETFs beyond Ethereum
Cryptocurrency Industry Participants Now Eagerly Awaiting the Debut of Spot ETFs Ethereum, the second largest cryptocurrency by market capitalization. Last week, in an unexpected move, the SEC granted approval to a total of eight funds based on Ethereum (ETH), and only a final go-ahead is missing for the launch.
“This is a natural progression where Ethereum is expected to be approved as a fully tradable ETF“McDermott said, although he was skeptical that the move would open the door for other cryptocurrency ETFs.
The analysts of Bloomberg and Standard Chartered have recently raised the possibility that other cryptocurrency ETFs such as Solarium and XRP land on the US market in the months following the debut of the Ethereum.
Observers agree that the recent approval means that the SEC does not classify Ethereum as a security, which could not only be a good regulatory signal for the industry as a whole, but an indicator that other similar digital currencies could be included under the same classification.
However, not everyone agrees that this will effectively allow the expansion of the ETF market into more digital assets. McDermott is one of those who does not see this scenario in the future so clearly.
“From my point of view, our clients typically only focus on Bitcoin and Ethereum; They are the two products that have tradable futures on the CME. That’s why you can see a positive reading [sobre los ETF de Ethereum]. In terms of others, I think we could be positive, but I think it’s too early to say“commented the director of Goldman.
Wall Street flows into cryptocurrencies
In any case, existing ETFs have so far proven to be a crucial entry point for Wall Street into the new financial asset class, bringing capital from institutional giants seamlessly into the market for the first time. of Bitcoin and other digital currencies.
“That’s enormously powerful.“McDermott commented on the move of companies such as BlackRockthe world’s largest asset manager, in ETFs Bitcoin and Ethereum.
“As regulations become clearer, more people come to the sales side and begin to show the viability of the market on the blockchain“he added, mentioning the possibility of leveraging technology for things like tokenization.”where the value proposition is probably great“.
Meanwhile, some believe the future will be even brighter for spot ETFs. Bitcoin and Ethereumwith the analysts of Bernstein anticipating that the market could grow to USD $450 billion.
BTC changes hands around USD $68,500 at the time of publication while ETH is around USD $3,770, with respective gains of 55% and 60% so far in 2024, according to data from Google Finance.
Article by Hannah Estefanía Pérez / DailyBitcoin
Picture of Depositphotos
WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.
