Goldman Sachs to Become Authorized Participant in Bitcoin ETFs: Report
According to a new report, Goldman Sachs is expected to become an authorized participant (AP) in two key Bitcoin exchange-traded funds (ETFs). The report suggests that the investment bank is looking to play a prominent role in both BlackRock and Grayscale’s potential upcoming Bitcoin ETFs. If Goldman Sachs joins as an AP, it would join other firms like Jane Street, JPMorgan, and Cantor Fitzgerald who have also expressed interest in serving as APs for Bitcoin ETF applicants.
Turbulent Morning for Bitcoin
Bitcoin experienced a sudden drop of approximately 8% in value after a report from Matrixport claimed that the U.S. Securities and Exchange Commission (SEC) would reject all spot Bitcoin ETF applications. The report states that the applications fail to meet a critical requirement necessary for approval. This news prompted backlash on social media, with users calling for an investigation into Matrixport for market manipulation.
Unclear Approval Timeline for Spot Bitcoin ETF
The co-founder of Matrixport, Jihan Wu, defended the report against accusations of causing the market crash. Wu cited bearish views on X and an unexpected drop in crypto stocks as potential factors contributing to Bitcoin’s decline. While the cryptocurrency has slightly recovered, its approval as a spot Bitcoin ETF remains uncertain. Nevertheless, Goldman Sachs’ involvement as an AP in Bitcoin ETFs signals a potential pathway for greater mainstream adoption of cryptocurrency.
Hot Take: Goldman Sachs Expands Crypto Presence with Bitcoin ETFs
Goldman Sachs’ reported decision to become an authorized participant in BlackRock and Grayscale’s Bitcoin ETFs further demonstrates traditional finance’s growing acceptance of cryptocurrencies. By joining other investment banks as APs, Goldman Sachs is paving the way for increased institutional involvement in the crypto industry. However, the approval of a spot Bitcoin ETF is still uncertain, and the recent market turbulence highlights the challenges and volatility associated with cryptocurrency investments. As the SEC continues to evaluate Bitcoin ETF applications, investors and industry participants eagerly await a decision that could have a significant impact on the future of digital assets.
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