Goldman Sachs Eyes Authorized Partner Role for BlackRock and Grayscale Bitcoin ETFs
Goldman Sachs has emerged as a likely key participant in the long-awaited Bitcoin ETF from heavyweights BlackRock and Grayscale. The Wall Street titan is in discussions to become an authorized participant (AP), according to information shared with CoinDesk by sources familiar with the situation.
Key Details:
- Goldman Sachs involvement would aid high-profile BTC ETF bids from BlackRock and Grayscale.
- Talks suggest the bank could be among up to 10 AP’s envisioned for each approved fund.
- This follows commitments from JPMorgan, Jane Street, Cantor Fitzgerald, and more.
Read more: Bloomberg Bitcoin ETF Analyst Questions Matrixport SEC Rejection Report
Goldman Sachs Line Up Behind Bitcoin ETF
The approval for a spot Bitcoin ETF from the SEC is still on hold, but things have been heating up this month. Regulators have hinted that they might be open to giving the green light to cash-backed products from trustworthy issuers.
This cash-backed model has been stuck in regulatory limbo for three years, facing various challenges. However, there’s a potential breakthrough by sidestepping these hurdles.
JPMorgan, Jane Street, and Cantor Fitzgerald already pledged participation last week in supporting external filings. Sources say the roster of backers will expand significantly upon approval decisions to enable liquidity.
Read more: Radiant Capital Pauses Arbitrum Market After $4.5M Flash Loan Attack
Goldman Sachs Involvement Sends Strong Signal
The potential involvement of Goldman Sachs marks a significant milestone for cryptocurrency, signaling a strong endorsement from mainstream financial circles. As the leading global investment bank, Goldman Sachs brings substantial credibility to the integration of crypto within the traditional finance landscape.
BlackRock stands as the world’s largest asset manager at nearly $10 trillion. Converting Grayscale’s market-leading Bitcoin Trust into an ETF format became more viable after a court ruling against the SEC in July.
The realization of a spot bitcoin fund in America appears increasingly imminent. However, a few reports, like the one from Matrixport, suggest that the SEC could likely reject Bitcoin ETF applications in January.
