- Jane Street Capital has emerged as the preferred broker-dealer for several bitcoin ETF issuers like BlackRock and Fidelity Investments.
- Top trading firms are being tapped as authorized participants to manage the flow of cash in and out of proposed bitcoin ETFs.
- There is growing confidence that the SEC will finally approve a bitcoin ETF, providing mainstream investors regulated and safer exposure to bitcoin.
The race to launch the first bitcoin exchange-traded fund (ETF) in the U.S. is heating up. Major asset managers have filed proposals with the Securities and Exchange Commission (SEC), naming top trading firms as authorized participants.
Jane Street Emerges as Go-To Broker
BlackRock, Fidelity Investments, WisdomTree, and Valkyrie Investments have all named Jane Street as the authorized participant for their proposed bitcoin ETFs. The authorized participant is the entity responsible for managing the flow of cash in and out of an ETF.
In addition to Jane Street, BlackRock said it has also selected JPMorgan Securities for this role if its bitcoin ETF gets regulatory approval. Valkyrie tapped Cantor Fitzgerald as its second authorized participant.
ETFs Seen as On-Ramp for Bitcoin Exposure
The rush by issuers to line up top trading partners signals growing confidence that the SEC will finally approve a spot bitcoin ETF after rejecting many proposals in recent years.
Proponents argue that a bitcoin ETF would provide regulated and safer exposure to bitcoin versus investing directly in the digital asset. It may also give more mainstream investors and institutions a way to gain exposure to the cryptocurrency markets.
The fate of bitcoin ETF proposals rests in the hands of the SEC under Chairman Gary Gensler. The agency has expressed concerns in the past about potential manipulation and lack of transparency in the bitcoin markets.