According to CoinDesk, Goldman Sachs is in talks to become an authorized participant (AP) for the bitcoin ETFs that BlackRock and Grayscale are seeking to introduce in the U.S. The role of an AP is crucial in the ETF industry, as it involves creating and redeeming ETF shares to ensure they trade in line with their underlying assets. Goldman Sachs would join other financial giants such as JPMorgan Chase, Jane Street, and Cantor Fitzgerald, who have already taken on the AP role for some of the companies seeking the Securities and Exchange Commission's permission to offer bitcoin ETFs in the U.S.
The adoption of a cash-based mechanism for handling the bitcoin backing the shares has allowed big U.S. banks, who have traditionally avoided dealing with cryptocurrencies directly, to join the bitcoin ETF party. BlackRock is the world's largest asset manager, while Grayscale manages the $26 billion Grayscale Bitcoin Trust, the largest bitcoin investment vehicle. Grayscale aims to convert its trust into an easier-to-trade ETF. Goldman Sachs has not yet responded to requests for comment, and both BlackRock and Grayscale have declined to comment.
