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19 December 2023
Goldman Sachs on Bitcoin’s Price Increase After ETF Approval

Investment bank Goldman Sachs does not anticipate an immediate surge in the price of Bitcoin following the approval of applications for the issuance of spot ETFs. McDermott’s logic is based on the expectation that institutional investors, accustomed to trading traditional financial instruments, will prefer to invest in familiar derivatives rather than directly in cryptocurrencies, where they have less expertise.

I do not expect a sharp increase in liquidity and the price of Bitcoin following the approval of ETFs. At the same time, this may attract institutional investors to this class of assets because they will have the opportunity to transact with a familiar product,” stated Matthew McDermott, the head of the digital assets department at Goldman Sachs.

Therefore, after the U.S. Securities and Exchange Commission approves the creation of ETFs, investors will not immediately start buying bitcoins. Instead, they will await the issuance of funds to acquire shares, causing the price of BTC to increase gradually.

Matthew also noted the growing interest of Goldman Sachs clients in all cryptocurrency derivatives in light of the expected approval of Bitcoin ETFs. In connection with this, the bank plans to develop new products based on blockchain technology, such as tokenized bonds.