Goldman Sachs Potentially Integral in Spot Bitcoin ETFs with Involvement from BlackRock

Goldman Sachs, the investment giant, is reportedly in discussions with BlackRock and Grayscale Investments regarding a pivotal role in their proposed spot bitcoin exchange-traded funds (ETFs), as per anonymous sources cited by CoinDesk.

Goldman Sachs Potentially Integral in Spot Bitcoin ETFs with Involvement from BlackRock

If given the green light, Goldman Sachs could act as an ‘authorized participant’ for BlackRock and Grayscale Investments’ spot bitcoin ETFs. This designation allows the financial heavyweight to “purchase and redeem shares directly from the ETF,” as explained by the Securities and Exchange Commission.

While the SEC has not yet approved any spot bitcoin ETFs, industry experts anticipate a decision between January 8 and January 10. Approval for Goldman Sachs’s role as an authorized participant would also be required.

As traditional financial institutions, wielding significant political influence, increasingly express interest in this novel crypto-based financial instrument, some argue that the eventual approval of ETFs is inevitable.

Anticipated Excitement Surrounding ETF Approval

At the close of the previous year, BlackRock revised its filing for a spot bitcoin ETF with the SEC, introducing Jane Street Capital and JP Morgan as potential authorized participants. This development was seen as a positive indicator for the potential approval of spot bitcoin ETFs, as previously reported by The Block.

In June 2023, BlackRock, the largest asset manager globally, submitted the initial filing for a spot bitcoin ETF.