Goldman Sachs Eyes Bitcoin ETF Role Through BlackRock and Grayscale: Sources
Goldman Sachs is reportedly in discussions to take on a significant role as an “authorized participant” (AP) for BlackRock and Grayscale’s potential bitcoin ETFs, pending approval from the SEC. This key involvement involves creating and redeeming ETF shares to ensure their alignment with the underlying assets, marking a crucial responsibility in the ETF industry.
The Wall Street giant is considering joining other major financial institutions in this role, such as JPMorgan Chase, Jane Street, and Cantor Fitzgerald, all of whom have been announced as APs for various companies seeking SEC permission to offer bitcoin ETFs in the United States.
The shift towards a cash-based mechanism for handling the bitcoin backing the ETF shares has opened doors for prominent U.S. banks that have previously shied away from direct involvement with cryptocurrencies. This adaptation is seen as a crucial step towards gaining SEC approval.
Goldman Sachs aims to partner with significant players in this space, namely BlackRock, the world’s largest asset manager, and Grayscale, known for managing the $26 billion Grayscale Bitcoin Trust. Grayscale, having recently won a significant court battle against the SEC, is seeking to convert its Bitcoin Trust into a more accessible ETF, having previously named market-makers Jane Street and Virtu Financial as proposed APs for this transition.
Despite requests for comment, Goldman Sachs remained unresponsive by the time of this report, while BlackRock and Grayscale declined to provide any comments on the matter. You can read more interesting news here – Bitcoin2Community.