BlackRock designates JPMorgan, Jane Street as Bitcoin ETF authorized participants

The big asset management company is planning to work together with certain participants, pending approval from the Securities and Exchange Commission (SEC).

Authorized participants play a key role in the operations of ETFs (Exchange-Traded Funds) by creating and redeeming shares. This means they can exchange ETF shares for a group of securities that represent the fund's holdings or choose a cash exchange. Knowing who these authorized participants are is crucial before the SEC makes its decision.

JPMorgan's CEO, Jamie Dimon, had previously suggested that the government should ban cryptocurrencies, expressing doubts about their legitimacy. However, JPMorgan is now planning to be one of the participants in a Bitcoin ETF, which seems to go against Dimon's previous statements.

Analysts from Bloomberg Intelligence, like James Seyffart and Eric Balchunas, believe the SEC is likely to approve Bitcoin ETF proposals that commit to cash-only creations and redemptions, as long as they have agreements with authorized participants. There is a high probability of SEC approval, around 90%, and some companies are expected to launch a spot Bitcoin ETF in early January.

With a deadline of January 10 for a decision on proposals by ARK Invest and 21Shares, people are watching for potential developments in the emerging Bitcoin ETF landscape. Despite refilings by companies like ARK, 21Shares, and VanEck, they have not yet named authorized participants. It is anticipated that firms may reveal this information when filing their effective prospectus, which is the final step before going live.

In a June 2022 report, Grayscale Investments had mentioned plans to work with Jane Street and Virtu Financial if its Grayscale Bitcoin Trust (GBTC) became an ETF, but recent filings have not confirmed these participants.

Valkyrie names Cantor Fitzgerald, Jane Street as APs

In a recent update, Valkyrie filed another amended S-1 for their Bitcoin ETF, revealing Jane Street and Cantor Fitzgerald as their authorized participants. This move is significant and suggests a potential opening of the floodgates in the Bitcoin ETF industry.

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