According to CoinDesk’s report on Wednesday, Goldman Sachs is reportedly discussing becoming an authorized participant for spot bitcoin exchange-traded funds (ETFs) planned by BlackRock and Grayscale. These ETFs aim to track the actual market price of Bitcoin, allowing investors exposure to the asset without directly purchasing it.
Currently, 14 asset managers are seeking approval from the U.S. Securities and Exchange Commission (SEC) for spot bitcoin ETFs. These funds would mirror the value of the cryptocurrency itself. The SEC is expected to reveal its decision by January 10, which is the deadline for approving or rejecting the Ark/21Shares ETF. So far, approved crypto ETFs have been linked to futures contracts of bitcoin and ethereum.
Goldman Sachs and BlackRock declined to comment, and there was no immediate response from Grayscale when Reuters requested a comment.
In the past ten years, the SEC has turned down numerous attempts to introduce these products, citing concerns about potential market manipulation and a lack of safeguards for investors.
An authorized participant holds the authority to generate or redeem an ETF’s shares and ensures the fund accurately mirrors the underlying asset’s value.