Crypto asset manager Grayscale Investments is reportedly in talks with investment banks JPMorgan and Goldman Sachs regarding their potential involvement in a proposed spot Bitcoin exchange-traded fund (ETF). Grayscale recently filed an amended application with the United States Securities and Exchange Commission, but did not list any authorized participants. However, it is worth noting that ETF applicants are not required to disclose authorized participants in their filings, so other financial firms could still join.
Goldman Sachs, which has historically held a neutral stance towards cryptocurrencies, is also reportedly in discussions with BlackRock to act as an authorized participant for its ETF. BlackRock has already named quantitative trading firm Jane Street and JPMorgan as authorized participants in its proposed ETF.
An authorized participant plays a crucial role in managing an ETF, as it facilitates the creation and redemption of shares in the fund. Grayscale and other ETF issuers can name multiple financial firms as authorized participants.
While JPMorgan has already been named as an authorized participant for several proposed spot Bitcoin ETFs, Goldman Sachs could potentially join other Wall Street giants, such as Cantor Fitzgerald and Jane Street, in this role.
The approval of a Bitcoin ETF in the United States is highly anticipated, with ETF analysts predicting a 90% likelihood of approval before January 10. Currently, there are 14 asset managers seeking to issue a spot Bitcoin ETF, which would provide institutional investors with direct and regulated exposure to Bitcoin in the United States.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | very positive |
| Relevance Score | 1 |
| People | None, Matthew McDermott |
| Companies | Grayscale Investments, Goldman Sachs, JPMorgan, Cantor Fitzgerald, BlackRock |
| Currencies | Bitcoin |
| Securities | None |
