BlackRock, Fidelity, WisdomTree Name Jane Street, JPMorgan As Authorized Participants For Bitcoin ETFs

BlackRock Inc. BLK, Fidelity FIS, and WisdomTree Inc. WT have announced market maker Jane Street Capital and JPMorgan Securities JPM as the “authorized participants” for their potential Bitcoin ETFs, which are currently awaiting regulatory clearance.

What Happened: As reported by Bloomberg on Friday, BlackRock has submitted an updated prospectus to the Securities and Exchange Commission (SEC), appointing Jane Street Capital and JPMorgan Securities as authorized participants for its prospective spot-Bitcoin fund, provided it receives regulatory approval.

Jane Street has also been chosen by Fidelity and WisdomTree for their Bitcoin BTC/USD ETFs.

In a similar vein, Valkyrie has roped in Jane Street and Cantor Fitzgerald & Co. for identical roles.

Authorized participants, usually broker-dealers, handle cash flow and the creation and redemption of ETF shares. Despite industry apprehensions about securing authorized-participant agreements for Bitcoin funds, given the novelty of cryptocurrencies as an asset class, these firms have achieved considerable progress.

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“To our knowledge, BlackRock is the first issuer to fulfill the SEC's prerequisites to be considered for inclusion in the first batch of spot-Bitcoin ETF approvals,” stated Nate Geraci, President of The ETF Store.

Besides, Invesco has plans to waive the 0.59% fee on the first $5 billion of assets for the first six months after the listing of its Invesco Galaxy Bitcoin ETF. Fidelity’s filing mentions its fee as 0.39%, currently the lowest in the market.

Why It Matters: This development comes to light in the wake of a recent meeting between officials from the SEC and representatives from several firms, including BlackRock and Grayscale Investments, all competing to launch Bitcoin ETFs.

The SEC had set Dec. 29 as the deadline for final amendments. Issuers who didn’t meet this timeline would not be eligible for consideration in the initial round of potential spot Bitcoin ETF approvals in early January.

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