Goldman Sachs may play key role in spot bitcoin ETFs via BlackRock, Grayscale: Report

Investment firm Goldman Sachs is in talks with BlackRock and Grayscale Investments about playing a key role in their proposed spot bitcoin exchange-traded funds (ETFs), according to CoinDesk , which cited anonymous sources.

If approved, Goldman Sachs could serve as an "authorized participant" to BlackRock and Grayscale Investments' spot bitcoin ETFs, meaning the Wall Street juggernaut would be "permitted to purchase and redeem shares directly from the ETF," the Securities and Exchange Commission explains in a document .

No spot bitcoin ETFs have yet to be approved by the SEC, however, experts suggest the regulator will offer a decision some time between Jan. 8 and Jan. 10. Goldman Sachs's role as an authorized participant would need approval as well.

With traditional financial institutions, which weigh tremendous political power, showing increasing interest in the new crypto-based financial instrument, some argue its inevitable that the ETFs will eventually be approved. 

ETF anticipation

At the end of last year, BlackRock updated its spot bitcoin ETF filing with the SEC to include Jane Street Capital and JP Morgan as potential authorized participants. This served as a positive sign that spot bitcoin ETFs are likely to be approved, The Block previously reported.

BlackRock, the world's largest asset manager, filed for a spot bitcoin ETF in June 2023.