The excitement surrounding the upcoming spot Bitcoin (BTC) exchange traded fund (ETF) in the USA continues to rise.
Goldman Sachs, one of the largest US investment banks and a household name in the financial world, appears to be in talks with two major players in the ETF competition.
This affects two of the most important players in this race: BlackRock and Grayscale Investments.
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Goldman Sachs as an authorized participant of the Bitcoin ETF
Goldman Sachs wants to play a key role in BlackRock and Grayscale's Bitcoin ETFs. Two anonymous sources reported this to CoinDesk.
The investment bank wants a so-called authorized participant (AP) or authorized participant in the ETFs of the two asset managers.
The appointment of authorized participants is a crucial step in the ETF process. These participants play a key role in ensuring the liquidity and price stability of the ETFs.
BlackRock recently named competitor JPMorgan, the largest investment bank in the United States, as one of its authorized participants. Goldman Sachs is currently said to be in discussions with both asset managers about this.
Concerns over the approval of Bitcoin ETFs are making the crypto market volatile
Major banks have long been very cautious and skeptical about Bitcoin. The introduction of an exchange-traded Bitcoin fund in the USA appears to bring about a significant change here.
The approval of a Bitcoin ETF is therefore seen as a crucial step in the adoption of cryptocurrencies and their recognition as a full-fledged financial instrument.
The market therefore hopes that the launch of a spot Bitcoin ETF in the US will attract numerous private, but especially institutional, investors.
However, there are concerns that the US Securities and Exchange Commission could continue to reject all applications. The manager has done this many times in the past.
For example, a report from analytics firm Matrixport, in which the researcher said he expects the SEC to reject all applications this month, caused a major crash in the crypto market.
Many prices fell by more than 10%. Matrixport estimates that an actual rejection could even result in a 20% crash.
Bloomberg analysts also warned that there was a possibility of outright rejection. However, they believe the chance of rejection is only 10%.
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