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NEW YORK – Potential approval of Bitcoin and cash Exchange-Traded Funds (ETFs) in early 2024 could significantly increase market liquidity and attract institutional investors to the market, according to Goldman Sachs (NYSE:) forecasts. cryptocurrency space, potentially transforming the pensions and insurance markets in the coming year.
Goldman Sachs predicts that institutional investor interest in cryptocurrencies will increase with the SEC’s possible approval of Bitcoin and Ethereum spot ETFs. The Securities and Exchange Commission’s (SEC) expected approval of ETF proposals from major financial firms such as BlackRock (NYSE:) and Fidelity could mark a shift in the cryptocurrency landscape, shifting it more toward the institutions.
The SEC’s approval could also allow corporate pension funds to invest in cash ETFs through their 401k plans, as Steven T. Larsen reports. This advancement is seen as an important step towards improving the efficiency of financial infrastructure using blockchain technology.
The tokenization process is expected to improve secondary liquidity on-chain, providing greater trading flexibility. The introduction of Goldman Sachs’ tokenization platform earlier this year is designed to streamline the lifecycle management of digital assets and create secondary liquidity opportunities on-chain, marking a crucial development for customer engagement. institutional investors in digital assets.
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