Goldman Sachs, a well-known investment bank on Wall Street, will play a key role in the Bitcoin ETF that BlackRock and Grayscale want to introduce in the U.S., according to two people familiar with the matter. It is said that there is a high possibility.
The company is in talks to become an authorized participant (AP) for exchange-traded funds, said the people, who requested anonymity. This is one of his most important jobs in the multi-trillion dollar ETF industry, where he creates and redeems ETF shares to ensure the products trade in lockstep with the underlying assets. It's a role.
Goldman Sachs will take on that role, along with other financial giants. last weekJPMorgan Chase & Co., Jane Street and Cantor Fitzgerald announce they will take on AP work for several of the dozen companies seeking permission from the Securities and Exchange Commission to offer Bitcoin ETFs in the U.S. It was done.
And while more names may emerge, the names that have come up so far are some of the biggest in the U.S. financial industry. Officials at a major trading company said they expect each Bitcoin ETF to eventually have five to 10 APs.
Large U.S. banks have traditionally avoided direct trading in cryptocurrencies, but invited Thanks to the adoption of a cash-based mechanism for handling the Bitcoin backing of stocks, we have been able to join the highly anticipated Bitcoin ETF party. This is considered a necessary part of obtaining SEC approval.
The companies Goldman Sachs is looking to partner with are major corporations. BlackRock is the world's largest asset manager, and Grayscale operates the $26 billion Grayscale Bitcoin Trust, the largest Bitcoin investment vehicle. However, the Grayscale products are structured as trusts, which the company hopes to convert into easier-to-trade ETFs.
Grayscale won groundbreaking legal battle For the SEC, which paved the way for the Bitcoin Trust to be upgraded to an ETF. named last year Market makers Jane Street and Virtu Financial were proposed as APs when the time came to transition.
Goldman Sachs did not respond to a request for comment by press time. BlackRock and Grayscale declined to comment.
