What Goldman Sachs Predicts for Digital Assets in 2024

Crypto

MARKET_WATCH

Goldman Sachs predicts that institutional adoption and regulation of blockchains will mature digital assets in 2024. The bank’s head of digital assets, Matthew McDermott, said businesses that have experienced blockchain’s efficiency are now scaling to maximize commercial opportunities as the markets await a Bitcoin exchange-traded fund (ETF).

McDermott suggested that blockchains’ positive impacts on businesses are only realized at scale. He expects the renewed uptake from banks to enhance liquidity in the markets for tokenized assets.

Goldman Sachs Predicts Future of Digital Assets


According to McDermott,

“When you look at collateral mobility, there’s still a lot of inefficiencies that are a function of systems that are many decades old- when you actually start to see people adopt the adopt the technology, they’ll recognize that not only can you see a commercial proposition on the forward, you can actually see it today.”

McDermott predicts that traditional assets will be tokenized ahead of their more exotic counterparts. Less common assets will benefit the most in the areas of liquidity, pricing visibility pricing, and transparency.

His sentiments echo those of William Quigley, the co-founder of the collectibles-focused blockchain WAX. Quigley told BeInCrypto he expects the tokenization industry to build a niche in 2024 before maturing in 2030.

Bitcoin ETFs Will Grow Slowly


In the meantime, McDermott argues that the approval of Bitcoin exchange-traded funds (ETFs) will invite investments by pension funds and insurers who will improve Bitcoin’s overall liquidity. The US Securities and Exchange Commission (SEC) has until Jan. 10, 2024, to rule on an ETF application by ARK Invest. Analysts expect the SEC to approve all thirteen applications and ARK’s to ensure fair competition.

McDermott predicts Bitcoin ETFs may not grow immediately upon approval. Rather, they will gain traction as the year progresses.

Applicants had until Dec. 29, 2023, to amend their S-1 filings with the SEC. Bloomberg ETF analyst Eric Balchunas predicts that many firms will only list authorized entities that can create and redeem ETF shares closer to the ARK deadline.

Source : BeInCrypto / Jan 1, 2024

rayn.finance logo

Automata FRANCE SAS

240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma

Italy

The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act. How we keep your money safe.