Greyscale in Talks with JPMorgan, Goldman Sachs for Bitcoin ETF Role: Report

Crypto asset manager Grayscale Investments is in talks with firms including JPMorgan and Goldman Sachs about a role in a proposed bitcoin (BTC) exchange-traded fund (ETF).

Bloomberg reported on Jan. 4 that Grayscale had held talks with both investment banks, citing sources familiar with the matter. It comes less than a week after Grayscale filed an amended S-3 filing with the U.S. Securities and Exchange Commission, but did not list approved participants.

Meanwhile, earlier media reports indicated that Goldman Sachs is in talks with BlackRock, citing sources familiar with the matter.

BlackRock previously amended its S-1 filing to name quantitative trading firm Jane Street and JPMorgan as permitted participants in the proposed ETF.

It's taken more than a decade, but we're finally on the verge of having a place for USA-approved Bitcoin ETFs.

(Yes we are.)

Many deserve credit for this milestone but mainly @Grayscale and his lawyers who had the courage to fight this in court and win.

Let's fight harder in 2024.

— Jake Chervinsky (@jchervinsky) January 4, 2024

An authorized participant plays a key role in managing the ETF as it facilitates the creation and redemption of shares in the fund. An ETF issuer may appoint multiple financial institutions to act as authorized participants.

Notably, ETF applicants are not required to name permitted participants in S-1 or S-3 filings, meaning other financial firms can still come on board.

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JPMorgan has already been named as an authorized participant for several proposed Bitcoin ETFs, and Goldman Sachs could join other Wall Street giants, including Cantor Fitzgerald and Janet Street, who have been given the role of authorized participant for other ETF issuers.

Goldman Sachs has historically maintained a neutral stance on cryptocurrencies and the digital asset sector. In an interview with Fox Business on December 27, Matthew McDermott, Goldman's head of digital assets, said that the approval of the Bitcoin ETF would help the crypto market mature and invite institutional investment into digital assets more broadly.

One place Bitcoin ETF is not accepted in the United States. However, ETF analysts predict a 90% chance of approval before January 10.

New research note from me today. We still believe a 90% chance of spot #Bitcoin ETF approvals by January 10th. But if it comes early, we're entering a window where there *could* be a wave of approval for all current applicants pic.twitter.com/u6dBva1ytD

— James Seyff (@JSeyff) November 8, 2023

Currently, 14 asset managers in the United States are looking to issue a Bitcoin ETF, a position that gives institutional investors direct and regulated exposure to Bitcoin.

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