Goldman Sachs is reportedly seeking a key role in both BlackRock and Grayscale’s Spot Bitcoin ETT. According to a report from Coindesk, the investment bank is seeking to become the “authorized participant” (AP) for the investment product if it receives approval from the US Securities and Exchange Commission (SEC).
The role of an AP remains one of the most important for exchange-traded funds. Specifically, it consists of the creation and redemption of ETF shares to make sure products are traded in conjunction with the specified asset. Alternatively, Goldman Sachs is among other finance giants such as JP Morgan Chase to take on the AP role for other prospective issuers.
Also Read: SEC & Exchanges Meet for Final Comments on Spot Bitcoin ETFs
Goldman Sachs Seeking AP Role for Spot Bitcoin ETFs
Over the last few months, the anticipation of a Spot Bitcoin ETF approval has dominated the digital asset industry. Despite recent speculation signaling a rejection is impending, the greater market maintains expectations for approval. Now, one of the largest banks in the US is seeking a part in that product.
Specifically, Goldman Sachs is reportedly seeking the key role as an AP for BlackRock and Grayscale’s Spot Bitcoin ETFs. Moreover, the company joins other finance giants vying for the same role in one of the dozen applications the SEC is currently contemplating ahead of next week’s deadline.
Also Read: Bloomberg: Nothing To Indicate Spot Bitcoin ETF Rejections
The industry is expecting even more firms to emerge in hopes of taking on the AP role for the approved ETFs in the coming days. According to the original report, every Bitcoin ETF is expected to have “five-10 APs.” Additionally, they note the interest from traditional finance firms is growing ahead of a potential approval.
Goldman Sachs is specifically seeking to partner with BlackRock and Grayscale’s Bitcoin ETF products. The former is the largest asset manager in the world, while Grayscale already operates a $26 billion Bitcoin Trust. The largest Bitcoin investment vehicle, Grayscale is seeking to transition its trust to the pending Spot Bitcoin ETF.