Goldman Sachs, BlackRock and Grayscale ‘Bitcoin ETF’He wants to assume the position of an authorized participant for the future.
The leading investment bank is currently in talks with suitable parties to become an authorized participant (AP) for asset managers’ ETFs after receiving approval from the US SEC, according to a report by CoinDesk citing anonymous sources.
This announcement comes shortly after BlackRock and other asset managers recently met with the SEC to discuss changes to their filings and update fund redemptions to a cash-only module.
Why Are APs Important for ETFs?
APs facilitate the process by exchanging a basket of underlying assets for ETF shares (creation) or ETF shares for underlying assets (redemption). This process helps keep the market price of the ETF in line with its net asset value (NAV) and provides liquidity in the secondary market.
Growing Institutional Interest in Bitcoin
Goldman Sachs is not the first multinational banking giant to seek the AP role for its upcoming BTC ETFs. A few days ago, reports emerged confirming that BlackRock had selected several institutions as authorized participants for the iShares BTC ETF, including America’s largest bank JP Morgan and Jane Street.
Additionally, Valkyrie Investments, one of the investment managers looking to launch a BTC ETF, announced in a filing last week that it has selected leading trading firm Jane Street as well as financial services firm Cantor Fitzgerald as authorized participants.
It’s worth recalling that Grayscale prevailed last August when a U.S. appeals court declared that the SEC had no just cause to deny the firm’s request to convert its GBTC fund into an ETF. Grayscale has since joined the ETF race, although the firm had selected Jane Street and Virtu as APs while it awaits approval in June 2022.
Koinfinans.com As we have reported, the growing development is a trend predicted by many industry commentators. Bitcoin It points to the entry of large corporate players into the market. In particular, more American institutions are likely to join the list of authorized participants for upcoming Bitcoin ETFs.
Amid these developments, the general consensus points to the imminent approval of a spot Bitcoin ETF by the US SEC. However, a recent Matrixport report suggested that the regulator may reject all ETF applications this month due to failure to meet its standards.
Source : The Crypto Basic