Bitcoin ETF Preparations Ramp Up With Goldman Sachs And JPMorgan In Talks With Grayscale Over Key Role

Updated: 04 January 2024

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Grayscale Investments is in talks with JPMorgan and Goldman Sachs to become authorized participants for its proposed spot Bitcoin ETF (exchange-traded fund), Bloomberg reported.

Grayscale held talks with both investment banks regarding the role, a Bloomberg story said on Jan. 4, citing a person familiar with the matter. The development comes after Grayscale filed an amended S-3 application less than a week ago that did not list any authorized participants.

Goldman Sachs Enters The Spot Bitcoin ETF Race

It took over ten years, but we’re finally on the verge of having spot bitcoin ETFs approved in the USA.

(Yes, we are.)

Many deserve credit for this milestone, but chiefly @Grayscale and its lawyers, who had the guts to fight this out in court and won.

Let’s fight more in 2024.

— Jake Chervinsky (@jchervinsky) January 4, 2024

Goldman Sachs has also entered into a discussion with BlackRock, the biggest asset manager in the world, to become an authorized participant for its ETF, according to sources familiar with the matter, CoinDesk reported.

BlackRock previously amended its S-1 filing to name Jane Street and JPMorgan as authorized participants.

BlackRock just dropped its updated S-1 and it DOES name the APs: Jane Street and JPMorgan (which is kinda ironic). Looks we have our first horse that at the starting gate. pic.twitter.com/H3UmaesygJ

— Eric Balchunas (@EricBalchunas) December 29, 2023

Goldman Sachs has historically maintained a neutral stance towards cryptocurrencies and the digital asset space. In a Fox Business interview, on Dec. 27, head of digital assets Matthew McDermott that a Bitcoin ETF approval would enable the crypto market to mature. He also shared his belief that it would invite increased institutional investment into the digital asset sector.

JPMorgan has already been named as an authorized participant for several proposed spot Bitcoin ETFs. Goldman Sachs, on the other hand, could join other Wall Street giants such as Cantor Fitzgerald and Jane Street. In addition to JPMorgan, these firms have also already been granted authorized participant roles for other ETF issuers.

A Spot Bitcoin ETF Approval Could Be Around The Corner

New Research note from me today. We still believe 90% chance by Jan 10 for spot #Bitcoin ETF approvals. But if it comes earlier we are entering a window where a wave of approval orders for all the current applicants *COULD* occur pic.twitter.com/u6dBva1ytD

— James Seyffart (@JSeyff) November 8, 2023

A spot Bitcoin ETF has never been approved in the US, but Bloomberg Intelligence ETF analyst James Seyffart predicts that there is a 90% chance ETFs will be approved before Jan. 10.