According to a report published by CoinDesk, Goldman Sachs is expected to join as an authorized participant (AP) in two prominent Bitcoin Exchange-Traded Funds (ETFs). Insider sources claim that the investment bank is looking to play a significant role in both BlackRock and Grayscale’s upcoming Bitcoin ETFs.
If Goldman Sachs becomes an AP for these Bitcoin ETFs, they will join other firms like Jane Street, JPMorgan, and Cantor Fitzgerald, which have already expressed interest in serving as APs for Bitcoin ETF applicants.
Recently, the cryptocurrency experienced a sudden drop of approximately 8% in value. The dip occurred after an analysis by Matrixport, an investment services provider, suggested that the U.S. Securities and Exchange Commission (SEC) would reject all spot Bitcoin ETF applications. The report stated that the applications did not meet a critical requirement necessary for approval by the SEC. This news caused a wave of backlash on social media, with users calling for an investigation into possible market manipulation by Matrixport.
“It’s unrealistic to believe that a Matrixport report could trigger a trillion $ size market to crash,” said Matrixport co-founder Jihan Wu. “If someone attributes a flash crash to our report, I suggest examining the analysts’ expertise more closely.”
Despite the drop in value, Bitcoin managed to recover slightly, with its trading value settling around a 5% decrease at the time of this publication. Goldman Sachs’ interest in becoming an authorized participant in the crypto industry, alongside other investment banks, signals a potential pathway for greater mainstream adoption of cryptocurrency.
However, it remains uncertain when or if a spot Bitcoin ETF will be approved.
