BlackRock and Grayscale to participate in Bitcoin ETF Launch

As per those familiar with the situation, Goldman Sachs is in talks to become an authorised participant in the spot bitcoin exchange-traded funds that BlackRock and Grayscale are planning to launch. There are currently 14 asset managers vying for SEC approval for spot bitcoin ETFs, which would track the market price of the underlying crypto asset, giving investors exposure to the token without having to buy the currency.

The SEC is expected to make a decision on the Ark/21Shares ETF by January 10 - the deadline for approval or rejection. To date, the only crypto ETFs approved have been linked to bitcoin and ethereum futures contracts. Goldman Sachs and BlackRock did not respond to requests for comment. Grayscale did not immediately respond to Reuters' request for comment.

Several attempts to launch these products have been rejected by the top U.S. markets regulator over the last decade, citing concerns about market manipulation and the inability of would-be issuers to protect investors. An authorised participant has the authority to issue and redeem ETF shares and ensures that the fund tracks the underlying asset.