- Marking a significant shift in the financial sector, Goldman Sachs is set to join the Bitcoin ETF race, signifying the growing mainstream acceptance of cryptocurrencies.
- The involvement of major banks like Goldman Sachs and JPMorgan, once skeptical of Bitcoin, indicates a significant change in the perception of cryptocurrencies in the traditional financial world.
Reflecting insights from a significant episode of Goldman Sachs’ Asset Allocation Outlook: The Case for Greater Portfolio Diversification in 2024, published in late 2023, Goldman Sachs is now initiating a substantial entry into the Bitcoin ETF race as of early 2024.
This strategic move is a response to the evolving market dynamics, particularly highlighted by JPMorgan’s earlier partnership with BlackRock to serve as an “Authorized Participant” (AP) in the Bitcoin ETF market.
In a recent tweet, I emphasized Goldman Sachs’ new role, underscoring their responsibility in creating and redeeming Bitcoin ETF shares. This is crucial to ensure that these financial products accurately reflect the value of their underlying Bitcoin assets.
🚀The next trillion-dollar bank, #GoldmanSachs, is entering the #Bitcoin ETF race after #JPMorgan partnered with #BlackRock to serve as an "authorized participant." 🚀
📈This role involves creating and redeeming #BTC ETF shares to ensure the products trade in lockstep with… pic.twitter.com/DYDEX9ZbLT
— Marcel Knobloch aka Collin Brown (@CollinBrownXRP) January 4, 2024
This shift in the investment landscape is particularly notable considering the previous stance of JPMorgan’s CEO, Jamie Dimon, on Bitcoin. Dimon had expressed skepticism, particularly highlighting concerns about money laundering and the inherent instability of cryptocurrencies. At a bank investor conference in New York, he remarked,
The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.
Despite these earlier reservations, JPMorgan has now joined the Bitcoin ETF race, partnering with BlackRock as an AP. Similarly, Goldman Sachs, another financial giant, is reportedly in discussions to become an AP for these exchange-traded funds. This information, while still unofficial, comes from sources within the crypto community.
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