Goldman Sachs is making strategic moves to secure a significant role in the potential approval of BlackRock and Grayscale’s Spot Bitcoin Exchange-Traded Funds (ETFs). Reports from Coindesk suggest that the renowned investment bank is actively pursuing the position of “authorized participant” (AP) for these investment products, pending approval from the US Securities and Exchange Commission (SEC).
The role of an authorized participant holds paramount importance in the realm of exchange-traded funds. It involves the creation and redemption of ETF shares to ensure seamless trading in alignment with the specified asset. Goldman Sachs is not alone in seeking this role, as other financial giants, including JP Morgan Chase, are also vying for the opportunity to serve as AP for various prospective issuers.
As the digital asset industry eagerly awaits potential approval for Spot Bitcoin ETFs, speculation has loomed over potential rejections. Despite these speculations, the broader market maintains optimism regarding approval. In a noteworthy development, one of the largest banks in the United States, Goldman Sachs, is actively pursuing a key role as an authorized participant for BlackRock and Grayscale’s Spot Bitcoin ETFs. This move aligns with the growing trend of traditional finance firms expressing interest in such roles, with several others expected to emerge as contenders as the SEC contemplates numerous applications leading up to the upcoming deadline.
It is anticipated that each approved Bitcoin ETF will have between five to ten authorized participants. Goldman Sachs’ specific interest lies in collaborating with BlackRock, the world’s largest asset manager, and Grayscale, which currently operates a substantial $26 billion Bitcoin Trust. Notably, Grayscale aims to transition its existing trust into the anticipated Spot Bitcoin ETF. As the deadline approaches, the industry is poised for the emergence of more firms seeking the authorized participant role, reflecting the escalating interest from traditional financial institutions in the potential approval of Bitcoin ETFs.