BlackRock and Grayscale could add Goldman Sachs as authorized ETF participant

Two leading spot Bitcoin exchange-trade fund (ETF) applicants could add Goldman Sachs in a key role, CoinDesk reported on Jan. 3.

The crypto news site said that Grayscale and BlackRock could both add Goldman Sachs as an authorized participant. That role would see Goldman Sachs create and redeem shares for each spot Bitcoin ETF based on market demand.

The addition of Goldman Sachs is unverified. The involved companies have not publicly announced those additions or included Goldman Sachs in their filings, and Coindesk only stated that anonymous sources provided the information. Separate reports from Reuters state that Goldman Sachs and BlackRock declined to comment and that Grayscale did not immediately respond.

Regardless, Goldman Sachs is among the world’s thirty largest banks, meaning that it would be a major addition to any ETF provider’s offering.

Some authorized providers are known

Some ETF applicants have already named other authorized providers. BlackRock named Jane Street Capital and JPMorgan as authorized providers in a recent filing, while Valkyrie named Jane Street Capital and Cantor Fitzgerald.

In other amendments, Invesco listed Virtu and JPMorgan as authorized providers, while WisdomTree and Fidelity listed Jane Street Capital in the role. Grayscale, notably, omitted the names of authorized providers from its latest amendment but is expected to rely on Jane Street and Virtu based on 2022 reports.

The above names are not an exhaustive list. Coindesk suggested, based on statements from a source at a major trading firm, that each spot Bitcoin ETF could have between five and 10 authorized providers.

The U.S. Securities and Exchange Commission (SEC) must reach a decision on a spot ETF application from Ark Invest and 21Shares by Wednesday, Jan. 10. Many experts believe that the SEC will approve multiple ETFs at that time, though some believe an earlier approval by Friday, Jan. 5 is possible.

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