Crypto asset manager Grayscale Investments is reportedly in discussions with financial firms, including JPMorgan and Goldman Sachs, regarding their potential involvement in Grayscale’s proposed spot Bitcoin exchange-traded fund (ETF). According to sources familiar with the matter cited by Bloomberg on January 4, Grayscale has held talks with both JPMorgan and Goldman Sachs, although the exact nature of their potential roles remains undisclosed.
This news comes shortly after Grayscale filed an amended S-3 application with the U.S. Securities and Exchange Commission (SEC) last week, which notably did not list any authorized participants. An authorized participant is crucial for managing an ETF, facilitating the creation and redemption of shares in the fund. Grayscale’s move to engage with major financial institutions signals its commitment to ensuring a robust infrastructure for its proposed Bitcoin ETF.
In a separate report, it was suggested that Goldman Sachs is also in discussions with BlackRock about potentially acting as an authorized participant for BlackRock’s ETF. BlackRock had previously amended its S-1 filing to name JPMorgan and quantitative trading firm Jane Street as authorized participants for its proposed ETF.
While JPMorgan has been named as an authorized participant for various proposed spot Bitcoin ETFs, Goldman Sachs may join other prominent financial institutions, including Cantor Fitzgerald and Jane Street, which have secured authorized participant roles for other ETF issuers.
Goldman Sachs has traditionally maintained a neutral stance toward cryptocurrencies, but its head of digital assets, Matthew McDermott, expressed in a December 27 interview that the approval of a Bitcoin ETF would contribute to the maturity of the crypto market and attract increased institutional investment.
As of now, a spot Bitcoin ETF has not received approval in the United States. However, ETF analysts estimate a high likelihood of approval, around 90%, before January 10. Fourteen asset managers are currently seeking approval for a spot Bitcoin ETF, which would provide regulated and direct exposure to Bitcoin for institutional investors in the U.S.
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