Crypto asset manager Grayscale Investments is reportedly in talks with firms, including JPMorgan and Goldman Sachs, about a potential role in its proposed spot Bitcoin ( BTC ) exchange-traded fund (ETF).

Bloomberg reported on Jan. 4 that Grayscale held talks with both investment banks for the role, citing sources familiar with the matter. It comes less than a week after Grayscale filed an amended S-3 application with the United States Securities and Exchange Commission but didn’t list any authorized participants .

Meanwhile, an earlier media report also  suggests  Goldman Sachs is in discussion with BlackRock to act as an authorized participant for its ETF, citing sources familiar with the matter.

BlackRock previously amended its S-1 filing to name quantitative trading firm Jane Street and JPMorgan as authorized participants in its proposed ETF.  

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

An authorized participant plays a key role in managing an ETF, as it facilitates the creation and redemption of shares in the fund. An ETF issuer can name multiple financial firms to act as authorized participants.

Notably, ETF applicants aren’t required to name authorized participants in their S-1 or S-3 filings, meaning that other financial firms could still come on board.

Related: ‘Likely rejection’ or smooth sailing? Experts weigh in on potential spot Bitcoin ETF

While JPMorgan has already been named as an authorized participant for several proposed spot Bitcoin ETFs, Goldman Sachs could join other Wall Street giants, including Cantor Fitzgerald and Jane Street, which have been given an authorized participant role for other ETF issuers.

Goldman Sachs has historically held a neutral stance toward cryptocurrencies and the digital asset sector. In a Dec. 27 interview with Fox Business, Goldman’s head of digital assets, Matthew McDermott, said that a Bitcoin ETF approval would help the crypto market mature and invite increased institutional investment into digital assets more broadly.

A spot Bitcoin ETF has never been approved in the United States. However, ETF analysts predict the likelihood of approval is 90% before Jan. 10.

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

There are currently  14 asset managers are looking to issue a spot Bitcoin ETF, which would provide institutional investors with direct and regulated exposure to Bitcoin in the United States.