Asset manager Grayscale Investments is seeking partners for its spot Bitcoin ETF. The latter would be in talks with the banks JPMorgan and Goldman Sachs. These discussions come after their recent S-3 filing to the U.S. Securities and Exchange Commission.
JP Morgan and Goldman Sachs, authorized participants of Grayscale’s Bitcoin ETF?
According to Bloomberg, Grayscale held discussions with these two investment banks, less than a week after filing an amended S-3 with the United States Securities and Exchange Commission (SEC). In this latest request, the authorized participants were still not named.
JUST IN:🇺🇸#GRAYSCALE IN TALKS WITH JP MORGAN, GOLDMAN SACHS FOR #BITCOIN ETF ROLE. VIA {CT} pic.twitter.com/2uo7uAy9xE
— Crypto Macro (@cryptomacro14) January 4, 2024
Goldman Sachs is also in discussions with BlackRock to act as an authorized participant for its ETF. Separately, BlackRock previously amended its S-1 filing to name quantitative trading firm Jane Street and JPMorgan as authorized participants in its proposed ETF.
Authorized participants play a key role in the management of an ETF, as they facilitate the creation and redemption of fund shares. An ETF issuer may appoint multiple financial firms to act as authorized participants.
JPMorgan has already been named an authorized participant for several proposed spot Bitcoin ETFs. Goldman Sachs could join other Wall Street giants like Cantor Fitzgerald and Jane Street, which have also been designated as authorized participants for other ETF issuers.
Historically, Goldman Sachs has taken a neutral stance towards cryptocurrencies and the digital assets sector. However, approval of a Bitcoin ETF would benefit the maturity of the cryptocurrency market and encourage increased institutional investment in digital assets. approval of a Bitcoin ETF would benefit the maturity of the cryptocurrency market and encourage increased institutional investment in digital assets
To date, no spot Bitcoin ETF has been approved in the United States. However, ETF analysts estimate 90% chance of approval before January 10.
New Research note from me today. We still believe 90% chance by Jan 10 for spot #Bitcoin ETF approvals. But if it comes earlier we are entering a window where a wave of approval orders for all the current applicants *COULD* occur pic.twitter.com/u6dBva1ytD
— James Seyffart (@JSeyff) November 8, 2023
Currently, 14 asset managers are looking to issue a spot Bitcoin ETF. Its approval would provide institutional investors with direct, regulated exposure to Bitcoin in the United States.
Sources: Bloomberg; Twitter
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