Goldman wants role in Blackrock Bitcoin ETF: CoinDesk

The news: Goldman Sachs is in talks with Blackrock and Grayscale to play a key role in their Bitcoin exchange traded fund (ETFs) currently before US regulators, CoinDesk reports. Goldman would join JPMorgan Chase, Jane Street and Cantor Fitzgerald as authorised parties, which issue and redeem ETF shares to ensure prices remain in lockstep with underlying asset prices.

The numbers: Bitcoin's price has rallied more than 50% since October 2023 to as high as $US45,879 ($68,128) this week, its highest level since April 2022. Bitcoin's price is still a long way from an all-time high of around USD68,000, which was reached in November 2021 before tanking more than 75% to fall below USD16,000 less than a year later. BTC is currently trading at USD42,850.

The context: The late 2023 rally was seeded after the US Court of Appeals asked the Securities and Exchange Commission to reconsider its rejection of a Grayscale Bitcoin ETF. BlackRock, VanEck, WisdomTree, Fidelity, Bitwise and Invesco all have pending Bitcoin ETF applications awaiting approval. Crypto bulls hope an approved ETF will open the floodgates to more institutional investors and an eventual Ethereum ETF, but wary investors are wondering if the expected approval will be a "sell the news" event.