Mathew McDermott, head of digital assets at Goldman Sachs, believes that the approval of spot Bitcoin and Ether exchange-traded funds (ETFs) could ignite institutional interest in the crypto market. McDermott explains that ETFs would enhance market liquidity by offering institutional products that don’t require direct ownership of cryptocurrencies. While he doesn’t expect an immediate transformation, McDermott foresees a gradual shift in the landscape if the SEC approves these ETFs.

Over a dozen firms, including BlackRock and Fidelity, are eagerly awaiting regulatory approval for spot Bitcoin ETFs, raising hopes for direct investment in Bitcoin. McDermott also anticipates growth in the crypto market in the coming year, driven by blockchain’s commercial applications and increased participation from traditional financial institutions. He particularly emphasizes the potential for tokenization, which he believes will see significant development and adoption in 2023. Goldman Sachs’ own tokenization platform, GS DAP, has already demonstrated its efficiency in the market.

With Goldman Sachs’ digital asset team growing steadily, McDermott remains open to expanding the team further as needed, highlighting the continued momentum in the digital asset space.