BlackRock and Valkyrie Announce Authorized Participants for Bitcoin ETF

BlackRock and Valkyrie have named authorized participants, including J.P. Morgan and Jane Street, for their upcoming Bitcoin ETFs.


BlackRock's Authorized Participants

BlackRock, one of the applicants for a spot Bitcoin ETF, has announced their authorized participants. As BlackRock is not legally allowed to purchase Bitcoin itself, these participants will acquire the cryptocurrency on behalf of the asset manager. J.P. Morgan and Jane Street, a quantitative trading firm, have been named as authorized participants in BlackRock's filing. It is common for ETF issuers to have multiple authorized participants.

The decision to include J.P. Morgan as an authorized participant comes as a surprise to some industry experts, given CEO Jamie Dimon's negative stance on Bitcoin and the crypto sector. However, the choice suggests that the asset manager is tapping into J.P. Morgan's expertise and resources in the crypto space.

Valkyrie's Authorized Participants

Valkyrie, another applicant for a spot Bitcoin ETF, has also named their authorized participants. In addition to Cantor Fitzgerald, they have chosen Jane Street as an authorized participant. As with BlackRock, the use of multiple authorized participants by Valkyrie is in line with industry standards.

The selection of authorized participants is an important step in the process of launching a Bitcoin ETF. These participants play a crucial role in acquiring and managing the underlying Bitcoin assets for the ETF. By partnering with established financial institutions like J.P. Morgan and Jane Street, both BlackRock and Valkyrie are signaling their commitment to regulatory compliance and institutional-grade processes.

Upcoming SEC Decision

Both BlackRock and Valkyrie have filed updated S-1 forms with the Securities and Exchange Commission (SEC) on the last possible day. While the filings do not require the disclosure of authorized participants, both companies have chosen to do so. This suggests that they are confident in their progress and are actively preparing for the launch of their Bitcoin ETFs.

The SEC is expected to make a decision on the approval of a spot Bitcoin ETF between January 5 and 10. This decision will have significant implications for the crypto industry, as an approved Bitcoin ETF would provide easier access to Bitcoin for traditional investors and potentially increase mainstream adoption.