Bitcoin ETF, Goldman Sachs and BlackRock - What's Going On?

Goldman Sachs Group, Inc GS is reportedly discussing becoming an authorized participant for upcoming spot Bitcoin BTC/USD exchange-traded funds (ETFs) planned by BlackRock, Inc BLK and Grayscale. 

Goldman Sachs is trading higher by 1.71% and BlackRock by 2.06% on Thursday.

This development involves 14 asset managers, including Ark/21Shares, awaiting the U.S. Securities and Exchange Commission's (SEC) decision on their applications for spot bitcoin ETFs. 

These ETFs aim to mirror the actual market price of Bitcoin, offering investors exposure without direct currency purchase, Reuters cites a CoinDesk report.

The SEC will likely announce its verdict on the Ark/21Shares ETF by January 10. 

Also Read: Regulatory Momentum Builds As CBOE Greenlights Fidelity Filing, Goldman Sachs Eyes ETF Role

So far, the SEC has only approved crypto ETFs linked to Bitcoin and Ethereum futures contracts, not the actual cryptocurrencies. 

Goldman Sachs and BlackRock have refrained from commenting on these discussions, and Grayscale has yet to respond to inquiries.

For years, the SEC has consistently denied the launch of spot bitcoin ETFs, expressing concerns about market manipulation and the potential inability of issuers to safeguard investors. 

As an authorized participant, Goldman Sachs would have the authority to create and redeem ETF shares, ensuring that the fund accurately reflects the value of the underlying bitcoin. 

This move signals a significant step towards mainstream financial institutions engaging more directly with the cryptocurrency market.

Price Actions: GS shares are trading higher by 1.71% at $388.30 premarket on the last check Thursday. BLK shares traded higher by 2.06% at $800.30.

Also Read: Ex-Goldman Sachs Exec Steps Up As New Leader Of Coinbase Custody

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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