KEY POINTS
- Goldman Sachs, which very recently said it doesn't see value in Bitcoin, has become the latest addition in BlackRock's IBIT partners list
- Goldman's CIO said just a day before BlackRock amended its list that the bank is a crypto non-believer
- Crypto enthusiasts and Bitcoiners on X welcomed Goldman Sachs' apparent turnaround
Goldman Sachs, which recently reiterated that it cannot put value on Bitcoin or other digital assets, has been listed as a partner to BlackRock's spot Bitcoin exchange-traded fund (ETF), marking a significant turnaround in the investment banking giant's stance over the world's first decentralized cryptocurrency.
The New York-based investment banking company has been added into BlackRock's "authorized participants" list for its iShares Bitcoin Trust (IBIT), according to post-effective amendments filed with the U.S. Securities and Exchange Commission (SEC) Friday.
As an authorized participant, Goldman Sachs and other financial giants added, including UBS, Citigroup and Citadel, will be responsible for creating and redeeming the fund's shares to ensure that IBIT prices are aligned with Bitcoin prices.
BlackRock, the world's largest asset manager, already has a stellar list of banking and finance-related titans as authorized participants in its spot BTC ETF venture, including JP Morgan, Virtu, and Jane Street.
Goldman Sachs' addition comes just a day after Goldman's chief investment officer of the Wealth Management unit, Sharmin Mossavar-Rahmani, said in a Wall Street Journal interview that the bank still does "not think it Bitcoin] as an investment asset class."
"We're not believers in crypto," she reiterated, adding that "if you cannot assign a value, then how can you be bullish or bearish?" She went on to reveal that Goldman clients are disinterested in getting exposed to Bitcoin, which has been on an impressive bull run in the first quarter of the year.
She further slammed the cryptocurrency community, saying "all proclaim democratization of finance, yet the main decisions end up being driven by a few controlling people."
The latest revelation regarding Goldman Sachs' addition as a partner of BlackRock's IBT was met with enthusiasm from the crypto community on X (formerly Twitter).
Crypto enthusiast Muhmmad Azhar wrote that it was "fascinating" to see how traditional financing giants are coming around. "Let's hope they approach this new territory with the same thoughtfulness and balance we strive for in all aspects of life," he said.
Others expressed hopes that with "big players entering the game," cryptocurrencies may soon be welcomed with a more positive tone by traditional banks. Some noted that it was inevitable anyway.
Big players entering the game! The mainstream embrace of crypto is getting stronger.
— Swallow Team (@SwallowPremium) April 5, 2024
Wall Street's embrace of #Bitcoin continues to strengthen! Exciting to see giants like Goldman Sachs and Citigroup joining BlackRock's $IBIT ETF as authorized participants. Bullish times ahead! 🚀 #crypto #investment
— VT Performance (@VTPFTM) April 5, 2024
Wow, big move from BlackRock! Can't wait to see what Wall Street does next! 🚀
— Joba Network (@JobaNetwork) April 5, 2024
It is inevitable 🧑🚀
— MOON (@MoonStore_io) April 5, 2024
welcome to the party! everyone was waiting for someone to take lead and now everyone wants in
— Lim U-Chyung (@uchyung) April 5, 2024
The timing of crypto non-believer Goldman Sach's entry into the spot Bitcoin ETF space comes as the digital coin braces for its halving event wherein Bitcoin mining rewards are cut in half, reducing the number of Bitcoins in circulation. Historically, prices climbed after the halving, and with the latest bull run, there is expectation that Bitcoin is only set for brighter days this year.
