BlackRock Moves Closer to Approval for Bitcoin ETF
BlackRock, the asset manager, has updated its filing with the Securities and Exchange Commission (SEC) for its proposed spot bitcoin ETF, naming Jane Street Capital and JP Morgan Securities as authorized participants. While the inclusion of Jane Street was expected, the involvement of JP Morgan came as a surprise. This move is seen as a bullish step towards gaining approval from the regulator. JPMorgan CEO Jamie Dimon has been critical of cryptocurrencies in the past, making the involvement of his firm in a bitcoin ETF notable.
Deadline Approaches for SEC Decision
The deadline is approaching in January for when the SEC could decide to approve or disapprove a spot bitcoin ETF. Analysts believe that approval is likely, and once approved, it may take a few more days or weeks until the products are launched. The naming of authorized participants by BlackRock is viewed as a positive sign. Other companies such as Valkyrie and VanEck have also filed updates for their proposed bitcoin funds, indicating growing interest in crypto ETFs.
A Long Road to Approval
The crypto industry has long sought approval for a spot bitcoin ETF from the SEC without success. However, recent court rulings and a Washington D.C. court siding with Grayscale have raised hopes for approval. The court ruled that the SEC must re-review Grayscale’s bid for a spot bitcoin ETF after the asset management firm sued the agency last year following the rejection of its plan to convert its GBTC fund. These developments suggest that an approval may be imminent.
Hot Take: BlackRock’s Involvement Signals Growing Acceptance
BlackRock’s inclusion of authorized participants in its filing for a bitcoin ETF indicates growing acceptance of cryptocurrencies in traditional finance. The involvement of JP Morgan, despite CEO Jamie Dimon’s previous criticism of crypto, highlights the shifting attitudes towards digital assets. If approved, a spot bitcoin ETF could bring significant mainstream attention and investment to the crypto market, further fueling its growth. The upcoming SEC decision will be closely watched by industry participants and investors alike as it could mark a major milestone in the adoption of cryptocurrencies.
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