Crypto asset management firm Grayscale Investments is reportedly in talks with firms including JPMorgan and Goldman Sachs for a potential role in a proposed Spot Bitcoin (BTC) exchange-traded fund (ETF). Discussions are underway.
bloomberg report Grayscale announced on January 4 that it had held discussions with both investment banks about the role, citing sources familiar with the matter. Grayscale filed an amended S-3 application with the U.S. Securities and Exchange Commission less than a week after the approved participants were listed.
On the other hand, in previous media reports, suggest Goldman Sachs is in talks with BlackRock about its role as an authorized participant in the ETF, people familiar with the matter said.
BlackRock previously amended its S-1 filing to name quantitative trading firms Jane Street and JPMorgan as authorized participants in the proposed ETF.
It took more than a decade, but we are finally on the verge of having spot Bitcoin ETFs approved in the United States.
(Yes, it is.)
Many people deserve credit for this milestone, but mainly @grayscale And the lawyers who had the courage to fight in court and win.
Let's fight even more in 2024.
— Jake Chervinsky (@jchervinsky) January 4, 2024
Authorized Participants play an important role in the management of the ETF as they facilitate the creation and redemption of shares within the Fund. An ETF issuer may appoint multiple financial companies to act as authorized participants.
Notably, other financial companies may also participate, as ETF applicants are not required to identify authorized participants on their S-1 or S-3 applications.
Related: “High chance of rejection” or smooth sailing?Experts consider the potential of spot Bitcoin ETF
JPMorgan has already been named as an authorized participant in several proposed spot Bitcoin ETFs, but Goldman Sachs could also join other Wall Street giants. include Cantor Fitzgerald and Jane Street have been assigned the role of authorized participants for other ETF issuers.
Goldman Sachs has so far maintained a neutral stance on the cryptocurrency and digital asset sector. December 27th interview Matthew McDermott, Goldman's head of digital assets, said in an interview with Fox Business that the approval of a Bitcoin ETF will help the cryptocurrency market mature and bring more institutional investors into a broader range of digital assets. Stated.
A Bitcoin spot ETF has never been approved in the US. But ETF analysts predict a 90% chance of approval. Until January 10th.
Today is a new research note from me. I still believe there is a 90% chance of winning a spot by January 10th. #bitcoin ETF approval. But if it happens sooner, there *could* be a wave of approval orders for all current applicants. pic.twitter.com/u6dBva1ytD
— James Seyffert (@JSeyff) November 8, 2023
Currently, 14 asset managers are considering issuing spot Bitcoin ETFs, which would provide institutional investors with regulated direct exposure to Bitcoin in the United States.
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