Goldman Sachs Eyeing Bitcoin ETF Role Via BlackRock and Grayscale: Sources

Goldman
Sachs,
the
high-profile
Wall
Street
investment
bank,
looks
likely
to
play
a
key
role
for
the
bitcoin
ETFs
that
BlackRock
and
Grayscale
want
to
introduce
in
the
U.S.,
according
to
two
people
familiar
with
the
situation.

The
company
is
in
talks
to
be
an
authorized
participant,
or
AP,
for
the
exchange-traded
funds,
according
to
the
people,
who
requested
anonymity.
That’s
one
of
the
most
important
jobs
in
the
multi-trillion-dollar
ETF
industry,
a
role
that
involves
creating
and
redeeming
ETF
shares
to
ensure
the
products
trade
in
lockstep
with
their
underlying
assets.

Goldman
Sachs
would
join
other
finance
giants
in
taking
on
that
role.

Last
week,
it
was
announced
that
JPMorgan
Chase,
Jane
Street
and
Cantor
Fitzgerald
would
take
on
the
AP
job
for
some
of
the
dozen
or
so
companies
seeking
the
Securities
and
Exchange
Commission’s
permission
to
offer
bitcoin
ETFs
in
the
U.S.

Read
more:



JPMorgan
CEO’s
Bitcoin
Bashing
Is
a
‘Do
as
I
Say,
Not
as
I
Do’
Situation

And
many
more
names
are
likely
to
emerge
–
though
the
ones
that
have
come
out
so
far
are
among
the
biggest
firms
in
U.S.
finance.
A
source
at
a
major
trading
firm
said
they
expected
each
bitcoin
ETF
to
ultimately
have
five
to
10
APs.

Big
U.S.
banks,
who
have
traditionally
avoided
dealing
with
cryptocurrencies
directly,

have
been
invited
to
join
the
hotly
anticipated
bitcoin
ETF
party
thanks
to
the
adoption
of
a
cash-based
mechanism
for
handling
the
bitcoin
backing
the
shares,
which
is
seen
as
a
necessary
part
of
winning
SEC
approval.

The
firms
Goldman
Sachs
is
seeking
to
partner
with
are
major
players.
BlackRock
is
the
biggest
asset
manager
in
the
world,
while
Grayscale
runs
the
$26
billion
Grayscale
Bitcoin
Trust,
the
biggest
bitcoin
investment
vehicle.
The
Grayscale
product
is
structured
as
a
trust,
though,
and
the
company
wants
to
convert
it
into
an
easier-to-trade
ETF.

Grayscale,
which
won

a
landmark
court
battle
against
the
SEC
that
cleared
the
way
for
upgrading
its
bitcoin
trust
into
an
ETF,

last
year
named
market-makers
Jane
Street
and
Virtu
Financial
as
proposed
APs
when
the
time
came
to
make
the
transition.

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