BlackRock Names JPMorgan and Jane Street as Authorized Participants for its BTC ETF Bid
BlackRock, the largest asset management firm in the world, has announced that it has named banking giant JPMorgan and trading firm Jane Street as authorized participants (APs) for its spot market Bitcoin (BTC) exchange-traded fund (ETF) bid. This development was revealed in the company’s updated S-1 filing to the U.S. Securities and Exchange Commission (SEC), which is the form for the initial registration of new securities.
An AP is an organization, typically a large bank, that has the power to create and redeem shares of a particular ETF. While the naming of APs is not required on S-1 filings, BlackRock including them in its filing may be seen as a power play. Bloomberg analyst Eric Balchunas described it as a “flex” and noted that it makes BlackRock the first horse officially ready for the BTC ETF bid.
BlackRock’s Move to Name APs in S-1 Filing Signals Power Play
By adding JPMorgan and Jane Street in its S-1 filing as authorized participants for its BTC ETF bid, BlackRock is positioning itself as a frontrunner in the race for approval. While other S-1 filings may not name their APs, it does not mean that they do not have them lined up. However, BlackRock’s move to include the names of APs in its filing indicates its strong position and readiness.
Valkyrie, Fidelity, WisdomTree, and Invesco Also Name APs for BTC ETF Bids
BlackRock is not the only player in the BTC ETF race to name its authorized participants. Valkyrie, an ETF issuer, has chosen both Jane Street and asset management firm Cantor Fitzgerald as its APs. Similarly, Fidelity, a prominent investment firm, has also selected Jane Street as an AP. WisdomTree, an ETF-issuer, has designated Jane Street as its AP, while Invesco, an investment management firm, has named JPMorgan and financial firm Virtu as its APs.
Spot Market BTC ETFs Expected to be Approved or Denied by the SEC in January 2024
The U.S. Securities and Exchange Commission (SEC) is expected to approve or deny spot market Bitcoin (BTC) exchange-traded funds (ETFs) sometime in January 2024. BlackRock and the other players in the BTC ETF race will have to wait until then to find out the decision on their bids.
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Analyst comment
Positive news: BlackRock, the largest asset management firm, has named JPMorgan and Jane Street as authorized participants for its BTC ETF bid. This positions BlackRock as a frontrunner in the race for approval. Other players, such as Valkyrie, Fidelity, WisdomTree, and Invesco, have also named their APs. The SEC is expected to approve or deny BTC ETFs in January 2024. Analyst outlook: This development strengthens BlackRock’s position in the market and increases the likelihood of BTC ETF approval.
