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BlackRock disclosed significant new information Friday as part of its proposed spot bitcoin ETF: the identities of its intended authorized participants.\u00a0<\/p>\n
The asset management giant plans to tap JPMorgan Securities and Jane Street as authorized participants, a Friday filing<\/a> notes, should the Securities and Exchange Commission grant approval for their proposed fund.<\/p>\n Authorized participants, or APs, are entities allowed to create and redeem shares of an ETF<\/a>. These organizations can either exchange ETF shares for a corresponding basket of securities that reflects the ETF\u2019s holdings, or exchange them for cash.<\/p>\n 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.<\/p>\n 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.\u00a0<\/p>\n Read more:<\/strong> As bitcoin ETF saga hits possible homestretch, here\u2019s what to watch for<\/a><\/p>\n Both Balchunas and Seyffart believe that there\u2019s 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.<\/p>\n 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\u2019t have to name APs until they file the effective prospectus.\u00a0<\/p>\n \u201cEssentially meaning they can go live. [It\u2019s] in there that an AP\/underwriter would theoretically have to be named (along with fees and other details),\u201d Seyffart said<\/a> in a post on X.<\/p>\n Grayscale Investments was set to work with authorized participants Jane Street and Virtu Financial if its Grayscale Bitcoin Trust (GBTC<\/a>) was allowed to convert to an ETF \u2014 a June 2022 report<\/a> by Bloomberg that a Grayscale spokesperson confirmed at the time.\u00a0<\/p>\n The firm did not name these companies as authorized participants in its latest S-3 filing, and a Grayscale representative did not comment further.<\/p>\n
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