The finance giant and investment bank Goldman Sachs will likely play a key role in BlackRock and Grayscale’s spot Bitcoin ETFs as the firm is in talks to become an authorized participant, according to people familiar with the matter.
An authorized participant (AP) is considered to play a major role in the exchange-traded funds (ETF) markets, where it takes on the responsibility of creating and redeeming ETF shares while ensuring that the traded products match the underlying assets. Thus, the role requires a trustworthy entity.
Goldman Sachs would also join the other dozens of Bitcoin ETF issuers in the AP role. The news coincides with last week’s update, when BlackRock made amendments to its ETF filing and added finance giants – JPMorgan Chase and Jane Street – as authorized participants.
Alongside Goldman Sachs and JPMorgan, many other finance institutions are likely to emerge as authorized participants, as a Bitcoin ETF could have up to 10 APs. These finance giants could also join multiple ETF issuers at the same time. Even the U.S. banks that were avoiding cryptocurrencies have been invited to become APs for spot Bitcoin ETFs.
Goldman Sachs’s entry represents one of the biggest partnerships across the finance industry with the BlackRock being largest asset manager and Grayscale emerging as a leading crypto investment company.
Also read: Tuttle Capital Plans Issuing 6 Leveraged Spot Bitcoin ETFs
