Investment Giant Goldman Sachs Files for a Bitcoin ETF

By José Oramas March 25, 2021 In Bitcoin, Institutions

Goldman Sachs has officially filed for a Bitcoin Exchange-Traded Fund (ETF) on Wednesday 24, following high demand from clients.

As previously reported by Crypto News Australia, the investment bank was under some heavy pressure from its clients seeking exposure to Bitcoin, as the currency reached new all-time highs, trading at levels of USD $58,700 on March 12.

The filing came a few days after the Chief Operating Officer at Goldman Sachs said the firm was trying to satisfy demand while staying on the regulatory side of U.S. laws. While the document does not state that Bitcoin will be the first crypto, it will allow exposure to cryptocurrencies, and of course, that includes BTC:

The ETF may have exposure to cryptocurrency, such as bitcoin, indirectly through an investment in a grantor trust. The ETF’s exposure to cryptocurrency may change over time and, accordingly, such exposure may not always be represented in the ETF’s portfolio.

Goldman Sachs EFT document

Bitcoin Could Skyrocket if Goldman Sachs’s ETF is approved

The crypto community has been paying attention to the possibility of a Bitcoin ETF since the first filings were submitted in 2018. Now the community is eager to know if the SEC (Securities and Exchange Commission) will finally approve it. 

If approved, the crypto market could see a boost in price as Goldman Sachs’s accredited investors, speed traders, and institutional capital will flock to the ETF.

This could drive Bitcoin’s price to astronomical levels, as a BTC ETF would require Goldman Sachs to back BTC in vaults, so they would have to make massive purchases.

Bitcoin ETFs Seeing Large Inflows of Capital

Throughout time many investment firms and companies have filed for a Bitcoin ETF, but the SEC has rejected all submissions.

Canada is the first country that approved a Bitcoin ETF. As soon as it was launched, the fund saw large inflows of cash, $470 million in just a few weeks.

VanEck’s Bitcoin ETF was the first proposal acknowledged by the SEC and published on its official website on March 18. The SEC has 45 days (39 days left) to approve or deny the proposal.

The Australian Securities and Investments Commission (ASIC) is also analysing the possibility for a Bitcoin ETF, which would be regulated under the Australian Securities Exchange’s AQUA Rules, according to ASIC commissioner Cathie Armour.

Another investment giant could enter the crypto space with a massive investment. Morgan Stanley is considering investing $254 to $441 million to acquire 10.6% of shares from the Korean crypto exchange Bithumb. Rumours are circulating that the investment bank could acquire the company for $2 billion.

José Oramas

José Oramas

José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.

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