Bloomberg reported on Thursday that the cryptocurrency asset management company Grayscale Investments is in talks with companies including JPMorgan and Goldman Sachs to play a key role in its proposed Bitcoin ETF.
According to the source, these two companies are being considered as Authorized Participants – companies authorized to create and redeem fund shares. Authorized Participants are crucial as they are responsible for ensuring that the ETF’s share price aligns with the fund’s underlying assets and provide a key source of liquidity.
BlackRock had previously designated JPMorgan Securities as an Authorized Participant for its proposed Bitcoin ETF, along with Jane Street Capital. CoinDesk also reported earlier today that Goldman Sachs is in talks with Grayscale and BlackRock to become Authorized Participants for the Bitcoin ETF.