Goldman Sachs in talks to manage more bitcoin ETF shares: CoinDesk

Goldman Sachs is in talks to become an authorized participant for potential bitcoin ETFs to be issued by BlackRock and Grayscale, CoinDesk reported. 

A spot ETF would create regulated shares that follow bitcoin’s price without investors having to buy the asset directly. As a potential AP, Goldman Sachs would be responsible for the creation and redemption of ETF shares. 

CoinDesk’s report — citing unnamed sources — suggested that the investment bank could be interested in signing on as an AP for either BlackRock or Grayscale.

But this isn’t the first time Goldman Sachs has been mentioned alongside spot bitcoin ETFs. A Dec. 22 amendment to Hashdex’s S-1 lists Goldman Sachs as an “authorized purchaser.”

The Hashdex fund would continuously offer creation baskets at their net asset value to such entities, the filing notes. Authorized purchasers can then sell shares to the public. 

In addition to Goldman Sachs, Brazil-based Hashdex names Cantor Fitzgerald and JPMorgan Securities — both of which have been named as APs by other bitcoin ETF proposals — and others as authorized purchasers. 

BlackRock, the world’s largest asset manager, named Jane Street and JPMorgan as APs for its proposed ETF in a disclosure filed on Dec. 29, the US Securities and Exchange Commission’s reported deadline for changes to bitcoin fund applications. BlackRock’s spot ETF would feature cash creations and redemptions, per SEC filings. 

Grayscale is taking a different route to becoming a spot bitcoin ETF. It’s seeking to convert the Grayscale Bitcoin Trust (GBTC) to an ETF. Earlier this year, Grayscale was handed a win by an appeals court. A panel of judges ordered the SEC to reconsider the firm’s application. 

Read more: ‘Game on’: SEC opts not to appeal Grayscale’s court win

The firm has long been linked with Jane Street and Virtu Financial as potential APs, and CEO Michael Sonnenshein seemed to confirm the connection in a recent post on X, saying that his company has had APs lined up “since 2017.”  

However, an amendment to Grayscale’s S-3 earlier this week did not formally name any APs. 

Goldman Sachs potentially joining the bitcoin ETF orbit would make it the latest major financial firm to get on board, joining the likes of JPMorgan, BlackRock, Fidelity and BNY Mellon, among several others. 

Ben Strack contributed reporting.

Goldman Sachs, BlackRock and Grayscale did not immediately return requests for comment.

Don’t miss the next big story – join our free daily newsletter.

blockworks.co

Leave a Reply

Your email address will not be published. Required fields are marked *