American multinational bank and financial services company, Goldman Sachs, is reportedly in discussions with BlackRock and Grayscale Investments to serve as their authorized participant (AP) in their spot Bitcoin ETF, as per recent reports.
In recent days, issuers of spot Bitcoin ETFs have amended their prospectus submitted to the U.S. Securities and Exchange Commission (SEC). Some of these issuers have publicly disclosed their authorized participants to ensure compliance with the regulator's crucial requirements.
Several leading financial institutions in the U.S., including JP Morgan, Jane Street Capital, Virtu Americas and Cantor Fitzgerald, have been identified as authorized participants of spot Bitcoin ETF issuers.
Notably, none of the spot Bitcoin ETF applicants have named Goldman Sachs as an authorized participant thus far.
However, multiple reports claim that Goldman Sachs is currently in talks with issuers such as BlackRock and Grayscale Investments, suggesting a potential future role.
According to one report, Grayscale is in talks with Goldman Sachs and JP Morgan regarding its proposed crypto investment vehicle, citing sources familiar with the matter.
Another report states that Goldman Sachs is also in discussions with BlackRock to serve as one of its authorized participants in its iShares Bitcoin Trust.
BlackRock, the New York-based asset investment titan, recently named JP Morgan and Jane Street Capital as authorized participants for its spot Bitcoin ETF.
In its latest filing, BlackRock specified that APs would conduct cash-only transactions for creating and redeeming shares, without directly or indirectly engaging in Bitcoin transactions as part of this process.
Grayscale Investments also submitted an amended prospectus to the SEC, omitting the authorized participant segment.
Grayscale clarified in the filing that APs for its proposed spot Bitcoin ETF would be limited to cash transactions for purchasing and redeeming shares, excluding direct or indirect involvement in Bitcoin transactions during the creation or redemption process.
"The Authorized Participant will deliver only cash to create Shares and will receive only cash when redeeming Shares," Grayscale's latest SEC filing read.
"The Authorized Participants will not directly or indirectly purchase, hold, deliver, or receive Bitcoins as part of the creation or redemption process or otherwise direct the Trust or a third party with respect to purchasing, holding, delivering, or receiving Bitcoins as part of the creation or redemption process," the filing added.
