Goldman Sachs is likely to become a key player for the Bitcoin ETFs that BlackRock and Grayscale are planning to launch in the U.S, per CoinDesk.

The bank is currently in discussions to become an authorized participant (AP), a significant role in the ETF industry that involves creating and redeeming ETF shares to maintain synchrony with their underlying assets.

Last week's news revealed that JPMorgan Chase, Jane Street, and Cantor Fitzgerald would become APs for several companies seeking approval from the Securities and Exchange Commission (SEC) to offer Bitcoin ETFs in the U.S. It's expected that each Bitcoin ETF will ultimately have between five to 10 APs.

Traditionally hesitant to engage directly with cryptocurrencies, major U.S. banks are now being invited to participate in the eagerly anticipated Bitcoin ETF initiative. This invitation comes due to the introduction of a cash-based system for managing the Bitcoin backing the shares, a step seen as crucial for SEC approval.

The companies Goldman Sachs plans to collaborate with are significant industry players. BlackRock is the largest asset manager globally, and Grayscale manages the $26 billion Grayscale Bitcoin Trust, the largest Bitcoin investment vehicle. Grayscale, having won a significant court case against the SEC last year, enabling its Bitcoin trust to upgrade into an ETF, previously named market-makers Jane Street and Virtu Financial as proposed APs.

However, the first Bitcoin spot ETF may not receive SEC approval this month, according to the prediction by crypto investment firm Matrixport. Despite frequent meetings between ETF applicants and SEC staff leading to refiled applications, Matrixport believes that all applications lack a crucial requirement for SEC approval. They predict that approvals for spot Bitcoin ETFs could come in the second quarter of 2024.