Goldman Sachs may join BlackRock and Grayscale Bitcoin ETF: Source | CoinDesk JAPAN

Major investment bank Goldman Sachs will play a key role in the Bitcoin ETF (exchange traded fund) that the world’s largest asset management companies BlackRock and Grayscale have applied for in the United States. There is a possibility that it will be fulfilled. Two people familiar with the matter spoke on condition of anonymity.

Under negotiation to become designated participant of ETF

Goldman Sachs is in talks to become an authorized participant (AP) on the ETF, two people familiar with the matter said. APs are one of the most important jobs in the multitrillion-dollar ETF industry, issuing and redeeming ETFs to ensure that the products trade in line with the prices of the underlying assets.

Goldman Sachs will follow other financial giants in taking on that role. Last week, US banking giant JPMorgan, crypto market maker Jane Street, and financial services firm Cantor Fitzgerald filed a proposal for a Bitcoin ETF with the US Securities and Exchange Commission (SEC). It has been announced that they will be accepting AP roles from some of the dozen or so companies that have applied.

The companies named so far are some of the biggest in the U.S. financial industry, but more could join. Officials at a major trading firm said they expect five to 10 companies to eventually become APs in each Bitcoin ETF.

Large American banks, which have traditionally avoided handling crypto assets directly, can join in on the long-awaited Bitcoin ETF excitement thanks to the adoption of a cash basis as the mechanism for handling the Bitcoin that backs ETFs. It became so. Cash basis is considered a necessary factor in obtaining SEC approval.

BlackRock to partner with Grayscale?

The companies Goldman Sachs is looking to partner with are major players. BlackRock is the world’s largest asset manager, and Grayscale operates the world’s largest Bitcoin fund, the Grayscale Bitcoin Trust (GBTC).

Grayscale, which won a legal battle with the SEC and paved the way for GBTC to become an ETF, announced last year that market makers Jane Street and Virtu Financial were potential AP candidates when the time came to convert to an ETF. ) was nominated.

Goldman Sachs did not respond to a request for comment by press time. BlackRock and Grayscale declined to comment.

｜Translation and editing: Rinan Hayashi
｜Image: Shutterstock
｜Original: Goldman Sachs Eyeing Bitcoin ETF Role Via BlackRock and Grayscale: Sources