BlackRock Names JP Morgan and Jane Street as Authorized Participants for Bitcoin ETF
BlackRock, the world’s largest fund manager, has made amendments to its Bitcoin exchange-traded fund (ETF) filing, designating JP Morgan Securities and trading firm Jane Street as authorized participants. An authorized participant collaborates with the fund issuer to create and redeem shares, enabling investors to cash out. This move is considered the final step in the application process after several reviews and changes.
In a recent amendment, BlackRock stated that its fund would allow for cash-only redemptions. The U.S. Securities and Exchange Commission had set a deadline for applicants to make amendments by today. Valkyrie, another fund manager, also named Jane Street and Cantor Fitzgerald as its authorized participants.
BlackRock’s application for a spot Bitcoin ETF in June generated significant market interest, with CEO Larry Fink referring to Bitcoin as an “international asset” that “digitizes gold.” Analysts now believe that BlackRock’s involvement, along with other prominent Wall Street firms, increases the likelihood of SEC approval for this long-awaited investment vehicle.
A Bitcoin ETF would provide a more accessible option for traditional investors to gain exposure to Bitcoin’s price movement without having to directly purchase and store the cryptocurrency.
The Irony of JP Morgan’s Involvement
Interestingly, JP Morgan, one of the authorized participants named in BlackRock’s filing, has a history of criticism towards Bitcoin. CEO Jamie Dimon has repeatedly expressed his opposition to cryptocurrencies and even stated that he would “close it down” if he had control over them.
Hot Take: BlackRock’s Endorsement Fuels Optimism for Bitcoin ETF Approval
The recent amendments made by BlackRock to its Bitcoin ETF filing, along with the involvement of prestigious firms like JP Morgan, have sparked optimism among industry observers. After a decade of denied applications, analysts believe that the SEC may finally approve a Bitcoin ETF. This development would allow investors to easily invest in Bitcoin through shares, eliminating the complexities of buying and storing the cryptocurrency directly.
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