Meanwhile, analysts are awaiting approval of the thirteen ETF applications, including ARK’s, to ensure fair competition in the market.
Goldman Sachs projects a 2024 where institutional adoption and blockchain regulation They will be the engines that will catapult the maturation of digital assets. Matthew McDermott, head of digital assets at the bank, highlighted the exponential growth of companies that have experienced the efficiency of blockchainscaling up to capitalize on these opportunities as markets eagerly await the arrival of spot ETFs from Bitcoin.
McDermott stated that the positive effects of blockchain on businesses are only truly felt on a large scale. In his view, the banks’ renewed interest will increase liquidity in tokenized asset markets.
“When we look at collateral mobility, there are still a lot of inefficiencies that come from decades-old systems. When people really start to embrace the technology, they’re going to realize that it’s not just a business proposition in the future, it can be materialize today,” McDermott explained.
The director predicts that Traditional assets will be tokenized before their more exotic counterparts, reaping greater benefits in terms of liquidity, price visibility and transparency.
These predictions align with the views of William Quigley, co-founder of WAX, a blockchain platform focused on collectibles, who expressed to BeInCrypto his expectation that the tokenization industry will establish a niche in 2024 before reaching maturity around 2030.
What about Bitcoin ETFs?
Regarding Bitcoin spot ETFs, McDermott stressed that their approval will invite pension funds and insurers to invest, boosting Bitcoin liquidity overall. The US SEC has until January 10, 2024 to rule on the ETF application submitted by ARK Invest.
Analysts await approval of thirteen ETF applications, including ARK’s, to ensure fair competition in the market.
McDermott anticipates that Bitcoin ETFs will not experience instant growth upon approval, but will gradually gain momentum throughout the year. Many companies are also expected to adjust their S-1 filings with the SEC until the December 29, 2023 deadline. Bloomberg ETF analyst Eric Balchunas provides that several companies will only list authorized entities that they can create and redeem ETF shares closer to the ARK deadline.
Source: Ambito
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