Goldman Sachs in Talks to Participate in BlackRock and Grayscale Spot Bitcoin ETFs

• Goldman Sachs is in discussions with BlackRock and Grayscale Investments to potentially serve as an authorised participant in their proposed spot Bitcoin ETFs.
• This role would allow Goldman Sachs to directly purchase and redeem shares from these ETFs, pending approval from the SEC.
• SEC is expected to make a decision between January 8th and January 10th.

Goldman Sachs is currently engaged in discussions with BlackRock and Grayscale Investments, exploring the possibility of becoming an authorised participant in their proposed spot Bitcoin ETFs, sources cited by CoinDesk have revealed.

The path to this role requires approval from the Securities and Exchange Commission (SEC). If granted, Goldman Sachs would act as an “authorised participant,” enabling the financial giant to purchase and redeem shares from BlackRock and Grayscale Investments’ spot Bitcoin ETFs directly, a definition outlined by the SEC.

While the SEC has yet to approve any spot Bitcoin ETFs, experts anticipate a decision to be reached between January 8th and January 10th. Approval for Goldman Sachs to assume the role of an authorized participant would also be required.

The Increasing Momentum of Spot Bitcoin ETFs

The emergence of traditional financial institutions, renowned for their substantial political influence, expressing interest in this new crypto-based financial instrument has bolstered the belief that ETF approval is inevitable.

In a significant development, BlackRock updated its spot Bitcoin ETF filing with the SEC at the end of the previous year, naming Jane Street Capital and JP Morgan as potential authorised participants. This move signalled a positive outlook for the approval of spot Bitcoin ETFs.

BlackRock, the world’s largest asset manager, initially filed for a spot Bitcoin ETF in June 2023. As the crypto world continues to intersect with traditional finance, the prospect of these ETFs gaining regulatory approval holds significant implications for the broader adoption of cryptocurrencies.