Goldman Sachs in Talks to be Authorized Participant for Bitcoin ETFs
Goldman Sachs is reportedly in discussions to become an authorized participant for the spot bitcoin exchange-traded funds (ETFs) that BlackRock and Grayscale are planning to launch. This move comes as 14 asset managers are seeking approval from the U.S. Securities and Exchange Commission (SEC) for spot bitcoin ETFs, which would provide investors with exposure to the token’s market price without having to purchase the currency.
The SEC is expected to announce its decision on Jan. 10, which is also the deadline for approving or rejecting the Ark/21Shares ETF. Up until now, only crypto ETFs tied to futures contracts on bitcoin and ethereum have been approved. Both Goldman Sachs and BlackRock declined to comment, while there has been no response from Grayscale.
SEC’s Concerns and the Role of an Authorized Participant
The SEC has consistently rejected previous attempts at launching bitcoin ETFs due to concerns about market manipulation and investor protection. An authorized participant plays a crucial role in creating and redeeming shares of an ETF, ensuring that the fund tracks the underlying asset.
Hot Take: Goldman Sachs’ Potential Entry into Bitcoin ETF Market
The reported talks between Goldman Sachs and BlackRock highlight the increasing interest of major financial institutions in the cryptocurrency space. If Goldman Sachs becomes an authorized participant for bitcoin ETFs, it could open up new opportunities for institutional investors looking to gain exposure to the digital asset market. This potential development could also influence regulatory decisions by the SEC and pave the way for more widespread adoption of crypto ETFs.
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