BlackRock and Valkyrie choose JPMorgan
IMPORTANT POINTS:
- BlackRock and Valkyrie are offering Bitcoin ETFs, naming JPMorgan and others as authorized participants.
- The surprise in the sector comes from JPMorgan’s inclusion in BlackRock’s project, given its CEO’s negative stance on Bitcoin.
- The SEC’s decision on the approval of the Bitcoin ETF is awaited.
BlackRock will use JP Morgan and quantitative trading firm Jane Street as authorized participants.. Valkyrie also named Jane Street, in addition to Cantor Fitzgerald.
Bitcoin ETF Candidates
Two bidders for a spot Bitcoin exchange-traded fund (ETF), BlackRock and Valkyrie, have named two authorized participants (APs) for their yet-to-be-approved ETF, documents show.
BlackRock was the first applicant to announce who will purchase Bitcoin on behalf of BlackRock, since by law you do not have the right to purchase cryptocurrency yourself. The asset manager is partnering with JP Morgan and quantitative trading firm Jane Street, the documents show. Valkyrie also named Jane Street, in addition to Cantor Fitzgerald, AP, another message shows. Many ETF issuers likely have several authorized participants.
Important Details: SEC Filings
Both filers filed updated Form S-1s with the Securities and Exchange Commission (SEC) on Friday, the last day filers can do so, making them the only ones to do so so far. However, applicants are not required to list their authorized participants in their S-1 filing.
Some industry experts were surprised to see JP Morgan’s name in BlackRock’s statement, given CEO Jamie Dimon’s negative stance on Bitcoin and the crypto sector in general. Earlier this month, Dimon said he would ban crypto if he were a government and that he is “deeply” against the asset class.
The SEC is expected to decide whether or not to approve a spot Bitcoin ETF. from 5 to 10 January.