Goldman Sachs: Bitcoin ETFs Are an 'Astonishing Success'

Goldman Sachs is striking an increasingly positive tone on Bitcoin calling the new spot Bitcoin ETFs an "astonishing success" after years of scepticism.

JUST IN: ???????? Goldman Sachs says the #Bitcoin ETF approval was a "big psychological turning point."

It has been an “astonishing success.” ???? pic.twitter.com/fcuhXMyAah— Bitcoin Magazine (@BitcoinMagazine) May 30, 2024

At the Consensus 2024 conference hosted by CoinDesk, Goldman's global head of digital assets, Mathew McDermott, said the SEC's approval of spot Bitcoin ETFs earlier this year marked a "big psychological turning point" for the industry.

"The Bitcoin ETF obviously has been an astonishing success," McDermott said, signalling a change in Goldman's stance after dismissing the idea of Bitcoin ETFs earlier. 

The bank has since joined the action, acting as an authorized participant for BlackRock's IBIT bitcoin ETF, which launched in January. That ETF recently became the world's largest, surpassing $20 billion in assets faster than any other ETF in history.

McDermott's bullish comments come after the massive inflows into US spot bitcoin ETFs, suggesting growing Wall Street acceptance. 

The warm embrace of Bitcoin ETFs follows years of scepticism from legacy finance giants like Goldman. But the staggering demand has converted many former naysayers.

McDermott cited surging interest from both retail and institutional investors in these regulated investment vehicles. Giants like BlackRock and Fidelity now operate spot Bitcoin ETFs managing billions in assets.

Clearly, these products have opened the floodgates for Wall Street money to access Bitcoin. And Goldman itself is expanding offerings through derivatives, research and more.

The comments signal legacy finance is increasingly onboarding to Bitcoin. With tradition finance institutions like Goldman and BlackRock now praising Bitcoin ETFs, wider adoption seems inevitable.