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Goldman Sachs Looking to Join Spot Bitcoin ETF Giants

Updated: Feb 29

The SEC's endorsement of spot Bitcoin ETFs has the potential to open doors for increased participation by institutional investors in the cryptocurrency market. This approval is anticipated to bring about significant transformations in both crypto investments and the regulatory framework surrounding them.

Goldman Sachs

Photo by Olga Subach on Unsplash

Goldman Sachs' recent strategic move places the financial giant alongside other industry leaders, such as JPMorgan Chase, Jane Street, and Cantor Fitzgerald, who are gearing up to engage in the eagerly anticipated spot Bitcoin ETFs. The involvement of major financial institutions like Goldman Sachs signals a dynamic shift in the landscape, with the potential to significantly shape the future trajectory of cryptocurrency investments and associated regulations.

In a noteworthy development last year, BlackRock took substantial steps towards securing approval for a spot Bitcoin ETF. This involved amending its filing and designating JP Morgan Securities and Jane Street as authorized participants. This strategic decision marked a pivotal moment in BlackRock's pursuit of a spot Bitcoin ETF, emphasizing the crucial role that authorized participants play in facilitating seamless processes for share creation and redemption. This, in turn, enhances the overall efficiency of investors entering or exiting the fund, as reported by Decrypt.

Major players from Wall Street are entering the competitive arena of spot Bitcoin ETFs, driven by the recent deadline for filing amendments set by the US Securities and Exchange Commission (SEC). Valkyrie, in response to this regulatory development, has nominated Jane Street and Cantor Fitzgerald as authorized participants, making strategic moves within the ETF sphere.

While speculations around spot Bitcoin ETFs are on the rise, Matrixport holds the expectation that the SEC will reject all applications. Citing concerns raised by SEC Chair Gary Gensler regarding cryptocurrencies, the crypto investment service provider anticipates a challenging road for such applications. Matrixport highlights the influence of the current Democratic-majority SEC leadership as a crucial factor in predicting potential rejections for spot Bitcoin ETF applications.

The approval of a spot Bitcoin ETF is deemed crucial for the overall growth of the crypto market, as Matrixport suggests that it could serve as a catalyst for widespread cryptocurrency adoption. However, Gensler's emphasis on rigorous compliance in the industry suggests a cautious approach to swiftly endorsing such financial instruments. The political and regulatory considerations may introduce delays in legitimizing Bitcoin as a mainstream store of value through a spot Bitcoin ETF.


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