Bitcoin ETF Talks Between JPMorgan, Goldman and Grayscale Take Place

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Crypto asset manager Grayscale Investments is making headlines as it engages in talks with renowned investment banks JPMorgan and Goldman Sachs. This collaboration aims to establish these financial giants as authorized participants in Grayscale’s eagerly anticipated spot Bitcoin ETF (exchange-traded fund).

Grayscale Continue To Push Forwards With Its Bitcoin ETF Application

This development follows Grayscale’s recent amendment to its S-3 application with the United States Securities and Exchange Commission. Interestingly, the amendment did not specify any authorized participants, sparking curiosity in the market.

The role of an authorized participant is crucial in the ETF landscape. These participants are responsible for the creation and redemption of ETF shares, ensuring the smooth operation of the fund. While ETF issuers are not mandated to name these participants in their filings, the involvement of firms like JPMorgan and Goldman Sachs could be a game-changer.

JPMorgan has already been named as an authorized participant for several proposed spot Bitcoin ETFs. Goldman Sachs, known for its historically neutral stance towards cryptocurrencies, is also in discussions with BlackRock for a similar role in its ETF, as per sources.

Matthew McDermott, head of digital assets at Goldman Sachs, highlighted in a recent interview the significance of a Bitcoin ETF approval. He believes it would mark a maturity in the crypto market and attract more institutional investment into digital assets.

Things you prob don't do if you going to deny or delay. Hearing similar btw, and why why when we see updated (final) 19b-4s roll in that is sign approval imminent as SEC has been doing back and forth w issuers offline to perfect their 19b-4s vs doing numerous refilings a la S-1s https://t.co/1K0tUYD4xa
— Eric Balchunas (@EricBalchunas) January 3, 2024

The SEC has yet to approve a spot Bitcoin ETF, but analysts are optimistic, predicting a 90% likelihood of approval before January 10. If successful, this would provide institutional investors with direct and regulated exposure to Bitcoin in the U.S., a milestone in the cryptocurrency sector.

Currently, 14 asset managers are vying to issue a spot Bitcoin ETF, indicating a strong interest and belief in the potential of Bitcoin and the broader digital asset market.

As the crypto community eagerly awaits the outcome of these discussions, the potential involvement of JPMorgan and Goldman Sachs in Grayscale’s Bitcoin ETF could herald a new era of institutional engagement in the cryptocurrency space.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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