Report
Financial giant Goldman Sachs is actively seeking to become an Authorized Participant (AP) for Bitcoin futures ETF and has been in talks with BlackRock and Grayscale.
(Background:
BlackRock, Fidelity… 9 issuers announce “underwriter AP”, SEC approves the final step for Bitcoin futures ETF)
(Supplement:
Bitcoin futures ETF “amendment application” approaching deadline! Ark, 21Shares have not yet indicated underwriters)
Under the request of the U.S. Securities and Exchange Commission (SEC) for many Bitcoin futures ETF applicants to submit S-1 amendment documents and confirm the background information of the Authorized Participants (APs) by last week, several applicants have already submitted and publicly disclosed relevant information.
Among the 13 applicants, including BlackRock, Fidelity, Valkyrie, WisdomTree, and Invesco/Galaxy, they have all designated companies such as Jane Street Capital, J.P. Morgan, Virtu Financial, and Cantor Fitzgerald as their APs.
Further reading:
BlackRock, Fidelity… 9 issuers announce “underwriter AP”, SEC approves the final step for Bitcoin futures ETF
Note: APs are key entities in the primary market of ETFs, directly subscribing to or redeeming ETF shares from issuers. Their work is crucial, not only ensuring that the ETF share price remains consistent with the value of its underlying assets, but also providing a critical source of liquidity for the ETF.
Goldman Sachs seeks to be AP for BlackRock and Grayscale Bitcoin ETFs
Today, Coindesk reported that prominent Wall Street investment bank Goldman Sachs is actively seeking to become an Authorized Participant for Bitcoin futures ETFs. The company is currently in talks with BlackRock and Grayscale, hoping to become an AP for their Bitcoin ETFs.
If Goldman Sachs successfully becomes an AP, it will be on par with financial giants such as J.P. Morgan, Jane Street, and Cantor Fitzgerald. According to insiders, it is expected that each Bitcoin futures ETF will ultimately have 5 to 10 Authorized Participants.
It is worth noting that several traditional large U.S. banks have been attracted to participate in the Bitcoin futures ETF market, mainly because these applicants follow the SEC’s preferred cash creation/redemption model, thereby avoiding direct trading of cryptocurrencies.
Currently, Goldman Sachs, BlackRock, and Grayscale have not made any public comments on this news.
Grayscale in talks with J.P. Morgan and Goldman Sachs to become its AP
According to Bloomberg’s report early this morning, Grayscale is currently in talks with several companies, including J.P. Morgan and Goldman Sachs, to become an Authorized Participant for its planned Bitcoin futures ETF.
In fact, as early as 2017, Grayscale has designated market makers Jane Street and Virtu as its APs. This new negotiation marks Grayscale’s further expansion of its partner range.
The market is currently holding its breath, hoping that the SEC will approve the first batch of Bitcoin futures ETFs by January 10th. With several large institutions actively joining the discussion and planning to become APs, it adds confidence to the approval of Bitcoin futures ETFs.
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