BlackRock Bitcoin ETF Drive Gains Momentum

BlackRock made a significant move toward securing approval for a Bitcoin exchange-traded fund (ETF) by submitting a crucial update to its application with the U.S. Securities and Exchange Commission (SEC) on Dec 29. The updated filing now identifies two key participants authorized for share creation and redemption: Jane Street Capital and JP Morgan Securities.

Furthermore, what catches attention is the inclusion of JP Morgan, which might seem ironic considering the bank’s CEO, Jamie Dimon, made past critical statements on Bitcoin. Despite Dimon’s skepticism, JP Morgan is involved in blockchain technology.

The bank has initiatives like Onyx and its digital currency, JPM Coin. Furthermore, analysts from JP Morgan had previously acknowledged the likelihood of SEC approval for a spot Bitcoin ETF back in September.

In mid-2010, Jane Street Capital actively collaborated with figures from FTX and Alameda Research. However, it’s crucial to emphasize that these connections are irrelevant to current ETF applications, as Jane Street has operated independently for over a decade.

Following BlackRock’s move, Valkyrie Investments, another entity seeking SEC approval for a Bitcoin ETF, also submitted an update. Like BlackRock, Valkyrie’s filing named Jane Street Capital as an authorized participant and added Cantor Fitzgerald to the list.

BlackRock Strategic Moves for Crypto ETF Approval

Bloomberg ETF analysts, including Eric Balchunas and James Seyffart, closely monitor these developments. Seyffart expressed optimism about the growing likelihood of ETF approval, stating, “It’s looking more and more like this is a done deal.” He added insights from Valkyrie’s filing, highlighting an 80 basis points fee, implying a daily accrual of 0.80% on the Trust’s Bitcoin holdings.

Moreover, Dec 29 marked the final date for asset managers to make adjustments to their spot Bitcoin ETF applications. As the SEC faces a deadline of Jan 10, 2024, to decide on Ark Invest’s application, industry experts anticipate a positive outcome. The prevailing sentiment suggests that the SEC might pave the way for approving Ark Invest’s and other Bitcoin ETFs.

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Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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