Grayscale Investments, a cryptocurrency asset management company, is reportedly in talks with companies including JPMorgan Chase and Goldman Sachs to play a key role in its proposed Bitcoin ETF, according to a source familiar with the matter.
These two companies are being considered as Authorized Participants, which are companies authorized to create and redeem shares of the fund. Authorized Participants play a crucial role in ensuring that the ETF’s share price remains consistent with the underlying assets of the fund 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, citing sources, that Goldman Sachs is in talks with Grayscale and BlackRock to become an Authorized Participant for the Bitcoin ETF.
