The Bitcoin ETF Race: Who are the Authorized Participants?
The approval of a Bitcoin spot ETF by the U.S. Securities and Exchange Commission (SEC) is looming, with market confidence at an all-time high. However, one aspect receiving significant attention is the designation of authorized participants in each application. These authorized participants play a crucial role in creating and redeeming shares of the ETF, ensuring sufficient liquidity. So, who are these authorized participants following the financial heavyweights into the Bitcoin ETF race?
Grayscale’s Authorized Participants for Bitcoin ETF Revealed
The lack of information regarding Grayscale’s authorized participant has raised eyebrows in the industry. However, in an updated filing, Grayscale clarified that it would be partnering with Jane Street Capital, Macquarie Capital, Virtu Americas, and ABN AMRO Clearing USA. This move appears to address the SEC’s concerns about the entities involved in the creation and redemption process, especially regarding the handling of Bitcoin. With this clarification, Grayscale joins other leading contenders in solidifying their authorized participant lineup.
Leading Financial Giants Name Authorized Participants for Bitcoin ETFs
Several financial heavyweights have named their authorized participants for their Bitcoin ETF applications. BlackRock’s iShares Bitcoin Trust has enlisted Jane Street Capital, JP Morgan Securities, Macquarie Capital, and Virtu Americas as their authorized participants. Similarly, VanEck’s Bitcoin Trust has partnered with Jane Street Capital, Virtu Americas LLC, and ABN AMRO Clearing. Franklin Templeton’s Franklin Bitcoin ETF has Jane Street Capital and Virtu Americas as authorized participants. Fidelity’s Fidelity Wise Origin Bitcoin Trust has Jane Street Capital, JP Morgan Securities, Macquarie Capital, and Virtu Americas LLC on board. These collaborations ensure the smooth creation and redemption of shares, enhancing the liquidity of these Bitcoin ETFs.
Missing Giants: Goldman Sachs Absent from Bitcoin ETF Authorized Participants
Rumors circled last week about Goldman Sachs potentially becoming an authorized participant for some Bitcoin ETF issuers. However, the updated filings from various contenders reveal that Goldman Sachs has not yet declared its involvement. While it remains uncertain whether Goldman Sachs will join the list of authorized participants, its absence raises questions about its stance on Bitcoin ETFs and its potential role in this emerging market.
The Long List of Authorized Participants for Bitcoin ETFs
With more than a dozen Bitcoin ETF applications pending, each application could designate numerous authorized participants. For instance, the application from Latin American contender Hashdex lists no fewer than fifteen authorized participants. Among the first names revealed in recent updates are Jane Street and JP Morgan. Notably, Jane Street has signed agreements with all applicants, indicating its popularity as an authorized participant in the Bitcoin ETF market. Other prominent financial giants, such as Macquarie Capital, Virtu Americas, and ABN AMRO Clearing, have also been named as authorized participants in various Bitcoin ETF applications.
As the race for a Bitcoin ETF approval intensifies, the attention shifts beyond just the financial heavyweights. The authorized participants will play a crucial role in providing the liquidity necessary for these investment vehicles to thrive. With each update and announcement, the landscape of authorized participants continues to shift, highlighting the significance of these partnerships in the success of Bitcoin ETFs.
Edited by Stacy Elliott.
Analyst comment
Positive news: The designation of authorized participants in Bitcoin ETF applications is receiving significant attention, ensuring sufficient liquidity for the ETFs. Financial heavyweights like Grayscale, BlackRock, VanEck, Franklin Templeton, and Fidelity have named their authorized participants, solidifying their lineups and enhancing liquidity. However, Goldman Sachs has not yet declared its involvement, raising questions about its stance on Bitcoin ETFs. Multiple Bitcoin ETF applications have numerous authorized participants, and each update and announcement impacts the landscape of authorized participants. The market is expected to see increased liquidity and competition among participants.
