BlackRock Partners with JPMorgan Securities and Jane Street for Bitcoin ETF
BlackRock has announced that it is collaborating with JPMorgan Securities and Jane Street as intended participants for its proposed Bitcoin ETF, pending approval from the SEC. Authorized participants are crucial to ETF operations as they can create and redeem shares. The disclosure of these participants is a pivotal step before the SEC makes its decision. Interestingly, JPMorgan CEO Jamie Dimon, who has previously advocated for a ban on cryptocurrencies, now contradicts his own statements by participating in the Bitcoin ETF.
SEC Approval Likely for Cash-Only Bitcoin ETFs
Analysts from Bloomberg Intelligence predict that the SEC is likely to approve spot Bitcoin ETF proposals that commit to cash-only creations and redemptions, as long as they have agreements with authorized participants. The likelihood of approval stands at 90%, and some firms are expected to launch spot Bitcoin ETFs in early January. The updated S-1 filing by BlackRock names JPMorgan and Jane Street as authorized participants.
Upcoming Developments in the Bitcoin ETF Landscape
The SEC faces a deadline of January 10 for a decision on proposals by ARK Invest and 21Shares. Market watchers anticipate potential developments in the emerging Bitcoin ETF landscape. Despite refilings by various firms, authorized participants have not yet been named. However, it is expected that firms will disclose this information when filing their effective prospectus, which is the final step before going live. Notably, Grayscale Investments had previously indicated intentions to work with Jane Street and Virtu Financial if its Grayscale Bitcoin Trust converted to an ETF.
Valkyrie Names Cantor Fitzgerald and Jane Street as Authorized Participants
Valkyrie recently filed another amended S-1 for their Bitcoin ETF, revealing Cantor Fitzgerald and Jane Street as their authorized participants. This development signals a potential opening of floodgates in the Bitcoin ETF industry.
Hot Take: Bitcoin ETFs Gain Momentum with Major Players Involved
The involvement of major financial institutions like BlackRock, JPMorgan Securities, and Jane Street in the Bitcoin ETF space indicates growing momentum for these investment products. Despite previous skepticism from some industry figures, such as JPMorgan CEO Jamie Dimon, the participation of these institutions highlights a shift towards acceptance and recognition of cryptocurrencies as viable investment options. With the SEC likely to approve cash-only Bitcoin ETFs and more firms entering the market, it seems that the long-awaited era of regulated cryptocurrency investment vehicles is finally arriving.
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