Authorized Participants (APs) are financial institutions or firms that have the right to create and redeem shares of exchange-traded funds (ETFs) or similar products. In the context of cryptocurrencies, APs play a crucial role in maintaining the liquidity and supply of a cryptocurrency-backed ETF.These participants can exchange a predefined basket of assets with the fund manager to create new shares or redeem existing shares. This process helps keep the market price of the ETF aligned with its underlying asset value. APs are typically large investment firms, banks, or authorized trading entities that possess the necessary capital and operational capabilities. Their involvement ensures that the ETF can adjust to market demands efficiently, thus stabilizing prices and enhancing trading volume.By participating in the creation and redemption process, Authorized Participants help bridge the gap between the cryptocurrency markets and traditional finance, facilitating easier access for investors who wish to trade these assets.