- Major asset managers BlackRock, Valkyrie, and Van Eck submitted revised filings for spot Bitcoin ETFs, specifying they will use cash-only models and naming authorized participants.
- BlackRock named Jane Street and JPMorgan as authorized participants, while Valkyrie appointed Jane Street and Cantor Fitzgerald. BlackRock is seen as the frontrunner for SEC approval.
- The SEC is expected to decide on the filings by January 10, 2023. If approved, trading would likely start shortly after. Over a dozen firms have applied for spot Bitcoin ETFs.
Major asset managers BlackRock, Valkyrie, and VanEck submitted last-minute amendments to their Bitcoin ETF filings on the final day for the SEC to consider them in January 2023. The new filings are revisions to their previous applications for spot Bitcoin exchange-traded funds (ETFs).
Authorized Participants Named
In its revised application, VanEck states that financial firms authorized to purchase or redeem shares from the trust, known as Authorized Participants (APs), will only use cash to create and redeem shares. This aligns with the SEC’s preference.
BlackRock’s updated filing named Jane Street and JPMorgan Securities as authorized participants for its proposed spot Bitcoin ETF. BlackRock specified it will use a cash-only model. It was the first to settle a trade on JPMorgan’s Tokenized Collateral Network service in October 2022.
First to the Starting Gate?
BlackRock first applied for a spot BTC ETF in June, with Valkyrie filing a week later. BlackRock representatives held two meetings at the SEC in December. Valkyrie also had at least one meeting there this month.
Bloomberg ETF analyst Eric Balchunas said the BlackRock amendment makes them the “first horse at the starting gate”, referring to their chances of SEC approval. Earlier this week, Balchunas said he expects the SEC to decide on the filings by January 10, 2023. If approved, trading would likely start shortly after.
Valkyrie’s Authorized Participants
In its updated filing, Valkyrie appointed Jane Street Capital and Cantor Fitzgerald as authorized participants. Additionally, StoneX Financial will serve as its lead market maker.
The Lineup of Applicants
BlackRock, VanEck, Grayscale, Bitwise, WisdomTree, Invesco, Galaxy, Fidelity, ARK Invest, Valkyrie, Franklin, Hashdex Global X, and Pando Asset have all applied for spot Bitcoin ETFs.
