According to Coindesk's news, based on anonymous sources, Wall Street's famous investment bank Goldman Sachs is in talks to become an “authorized participant” (AP) for Bitcoin ETFs offered by BlackRock and Grayscale.
The role of authorized participants is crucial in the multi-trillion-dollar ETF industry. It involves creating and redeeming ETF shares to ensure products are traded in sync with their underlying assets. Goldman Sachs' potential involvement joins other financial giants such as JPMorgan Chase, Jane Street and Cantor Fitzgerald, which was recently announced to take on the AP role for several companies seeking Securities and Exchange Commission (SEC) approval to offer Bitcoin ETFs in the US. indicates intention to participate.
It is noteworthy that the companies that Goldman Sachs wants to cooperate with are important players in the sector. BlackRock is the world's largest asset manager, while Grayscale operates the $26 billion Grayscale Bitcoin Trust, the largest Bitcoin investment vehicle. Grayscale aims to transform its product, currently structured as a trust, into a more easily tradable ETF.
Grayscale, which emerged victorious in a landmark court battle against the SEC, paving the way for its BTC trust to be upgraded to an ETF, had previously named market makers Jane Street and Virtu Financial as proposed authorized participants for the transition to occur.
*This is not investment advice.