According to a report by [Coindesk](https://www.coindesk.com/business/2024/01/03/goldman-sachs-eyeing-bitcoin-etf-role-via-blackrock-and-grayscale-sources/), investment bank Goldman Sachs is in talks to be an “authorized participant” in the highly anticipated spot Bitcoin ETFs likely to be offered by BlackRock and Grayscale.

As an authorized participant, Goldman Sachs would be responsible for creating and redeeming shares within the ETF to ensure that its price accurately mirrors the value of the assets.

Previously, it was reported that BlackRock amended its S-1 filing to name quantitative trading firms Jane Street and JPMorgan as authorized participants in its proposed ETF.   
ETF applicants are not required to submit the authorized participants in their S-1 or S-3 filings, so other firms could still participate. Grayscale’s amended S-3 application with the United States Securities and Exchange Commission did not list any authorized participants.

Despite regulatory restrictions preventing Wall Street banks from directly holding cryptocurrencies, they can still actively participate in the burgeoning market of spot Bitcoin ETFs by employing a cash-based system.

It joins other financial institutions like JPMorgan Chase and Jane Street.


Fri Jan 05 2024 Coindesk: Goldman Sachs in Discussions to be an ‘authorized participant’ for BlackRock and Grayscale's Bitcoin ETFs

Fri Jan 05 2024

Coindesk: Goldman Sachs in Discussions to be an ‘authorized participant’ for BlackRock and Grayscale's Bitcoin ETFs