all41author The disclosure comes amid rampant speculation about potential approvals for spot bitcoin ETF products in the US
Artwork by Crystal Le
share
BlackRock disclosed significant new information Friday as part of its proposed spot bitcoin ETF: the identities of its intended authorized participants.
The asset management giant plans to tap JPMorgan Securities and Jane Street as authorized participants, a Friday filing notes, should the Securities and Exchange Commission grant approval for their proposed fund.
Authorized participants, or APs, are entities allowed to create and redeem shares of an ETF. These organizations can either exchange ETF shares for a corresponding basket of securities that reflects the ETF’s holdings, or exchange them for cash.
ETF watchers such as Bloomberg Intelligence analysts James Seyffart and Eric Balchunas have been closely eyeing new S-1s to see who taps which firms as APs. The disclosure is seen as one of the final steps before the SEC can make its decision.
Balchunas said in a research note this week that the SEC was ready to approve spot bitcoin ETF proposals that commit to cash-only creations and redemptions and have signed agreements with authorized participants.
Read more: As bitcoin ETF saga hits possible homestretch, here’s what to watch for
Both Balchunas and Seyffart believe that there’s a 90% chance the SEC allows some firms to launch a spot bitcoin ETF in early January. The regulatory agency has a Jan. 10 deadline to make a decision on a proposal by Ark Invest and 21Shares, and could rule on similar plans by others by that date.
Ark and 21Shares, as well as VanEck, refiled their S-1s on Thursday and Friday, respectively. However neither firm has named any APs. Firms don’t have to name APs until they file the effective prospectus.
“Essentially meaning they can go live. [It’s] in there that an AP/underwriter would theoretically have to be named (along with fees and other details),” Seyffart said in a post on X.
Grayscale Investments was set to work with authorized participants Jane Street and Virtu Financial if its Grayscale Bitcoin Trust (GBTC) was allowed to convert to an ETF — a June 2022 report by Bloomberg that a Grayscale spokesperson confirmed at the time.
The firm did not name these companies as authorized participants in its latest S-3 filing, and a Grayscale representative did not comment further.
Don’t miss the next big story – join our free daily newsletter.
Newsletter
Blockworks Daily
Upcoming Events
Digital Asset Summit 2024
Mon – Wed, March 18 – 20, 2024
Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.
Permissionless III
WED – FRI, OCTOBER 9 – 11, 2024
Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]
recent research
Research
2021 was a massive year for network activity, so naturally protocol innovation and growth followed suit. Perps found true PMF, DEXs continued to launch new primitives, and stablecoins continued to excel.
by Research Team
/
Breaking headlines across our core coverage categories.
Markets
Bitcoin gained 1% Friday morning, paring losses from earlier in the week that saw the crypto lose as much as 4%
DeFi
The platforms allow collectors to offload their low-value NFTs to reduce capital gains tax liability
Markets
OKX will be delisting the top three privacy coins next week
Policy
The judgment represents an SEC victory ahead of a formal trial
DeFi
BONK’s DeFi applications show tech being built around the Solana memecoin
Business
The Japanese business Monex includes asset management, online brokerage and a crypto exchange
newsletter
Blockworks Daily Newsletter
Get the daily newsletter that helps thousands of investors understand the markets.
blockworks research
Unlock crypto's most powerful research platform.
Our research packs a punch and gives you actionable takeaways for each topic.
Blockworks Inc.
133 W 19th St., New York, NY 10011
