Goldman in talks with BlackRock, Grayscale to be part of spot bitcoin ETFs

American multinational investment bank and financial services company Goldman Sachs is in conversation to be an authorised participant for the spot bitcoin exchange-traded funds being launched by world's largest asset manager BlackRock and Grayscale, as per reports.

As of now, 14 asset managers are bidding for the US Securities and Exchange Commission's approval for spot bitcoin ETFs, that would track the market price of the underlying crypto asset.

This would give investors exposure to the token without having to buy the currency, CoinDesk reported citing people familiar with the situation.

The SEC is expected to announce its decision by January 10, which also happens to be the deadline to either approve or reject the Ark/21Shares ETF. 

Goldman Sachs and BlackRock did not comment on the matter while Grayscale did not immediately respond to a Reuters media query.

Crypto Affairs to Date

To this day, bitcoin and ethereum have been the only crypto ETFs approved to be tied to futures contracts.

The top US markets regulator has rejected multiple attempts to launch these products over the past decade on the back of market manipulation and inability on the part of likely issuers, to protect investor interest.

Notably, an authorised participant has the right to create and redeem the shares of an ETF, and ensures the fund tracks the underlying asset. 

Who's Who Eyeing the Scenario

Notably, Goldman Sachs is a high-profile Wall Street investment bank. JPMorgan Chase, Jane Street and Cantor Fitzgerald would take on the AP job for some of the dozen or so companies seeking the Securities and Exchange Commission's permission to offer bitcoin ETFs in the US, it was announced last week.

Grayscale runs the $26 billion Grayscale Bitcoin Trust, which happens to be the biggest bitcoin investment vehicle. 

(With Reuters Inputs)