The New York-based investment banking firm Goldman Sachs is expecting a “significant uptick” in cryptocurrency trading volume due to the “huge appetite” for cryptocurrency and the impending approval of a spot bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
The Wall Street player is predicting that the growth of cryptocurrency trading will accelerate in 2024, following the recent over 50% increase in the price of bitcoin, the largest cryptocurrency in the world. The company claims to have already observed indications that this might happen, such as a rise in client interest in trading cryptocurrency derivatives.
According to Goldman Sachs’ Mathew McDermott, who is in charge of the company’s digital asset unit, there has undoubtedly been increased interest as the market grows more enthusiastic about the possibility of a bitcoin exchange-traded fund (ETF).
However, McDermott stated he did not believe a “sudden immediate spike in liquidity and price” would result from the SEC’s impending approval of the ETF. He was hopeful that more institutional investors would turn to cryptocurrencies, though.
According to a September Goldman Sachs survey, 16% of the Wall Street firm’s clients believed it was likely that 10% of the market would be “tokenized” in the near future.
McDermott predicted that there would be a notable surge in quantum trading on-chain during the next one to two years, and that it would take three to five years for these marketplaces to truly take off.
He expressed his opinion that it is highly beneficial to be able to genuinely transact a product that people are familiar with and can offer scale.
