BlackRock and Valkyrie, two applicants for a spot bitcoin exchange-traded fund (ETF), have announced their authorized participants (AP) for the yet-to-be-approved ETF, according to recent filings. BlackRock, the first applicant to disclose this information, has partnered with J.P. Morgan and quantitative trading firm Jane Street to acquire bitcoin on its behalf. Valkyrie, on the other hand, has named Jane Street and Cantor Fitzgerald as its authorized participants.
It is worth noting that many ETF issuers often have multiple authorized participants. However, applicants are not required to disclose this information in their filings with the Securities and Exchange Commission (SEC). Therefore, the decision by BlackRock and Valkyrie to name their authorized participants is seen as a notable move.
The inclusion of J.P. Morgan as an authorized participant in BlackRock’s filing has surprised some industry experts. This is due to J.P. Morgan CEO Jamie Dimon’s well-known negative stance on bitcoin and the broader cryptocurrency sector. Dimon has previously expressed his opposition to cryptocurrencies, even stating that he would ban them if he were in a position of power. Therefore, the partnership between BlackRock and J.P. Morgan raises eyebrows and sparks speculation about the motives behind the collaboration.
Both BlackRock and Valkyrie filed updated S-1 forms with the SEC on the last possible day for applicants to do so. These filings are crucial as they provide the SEC with the necessary information to evaluate the ETF applications. The SEC is expected to make a decision on whether to approve a spot bitcoin ETF between January 5 and 10.
The race for a bitcoin ETF approval has garnered significant attention from Wall Street giants and the crypto community alike. If approved, a bitcoin ETF would provide institutional investors with a regulated and accessible way to gain exposure to the cryptocurrency market. This could potentially lead to increased adoption and mainstream acceptance of bitcoin.
However, the SEC has been cautious in its approach to approving bitcoin ETFs, citing concerns over market manipulation and investor protection. Several previous bitcoin ETF applications have been rejected by the SEC, with the regulatory body emphasizing the need for robust market surveillance and adequate investor safeguards.
As the decision deadline approaches, market participants eagerly await the SEC’s ruling on the BlackRock and Valkyrie ETF applications. The outcome will undoubtedly have a significant impact on the future of bitcoin and the broader cryptocurrency market.