BlackRock names JPM, Jane Street as authorized participants for spot Bitcoin ETF

BlackRock submitted an update to its spot Bitcoin ETF application with the U.S. Securities and Exchange Commission (SEC) on Dec. 29 .

BlackRock’s filing now names two authorized participants that will be involved in share creation and redemption: Jane Street Capital and JP Morgan Securities.

Bloomberg ETF analyst Eric Balchunas noted that JP Morgan’s inclusion is “ironic,” seemingly due to JP Morgan CEO Jamie Dimon’s repeatedly hostile statements toward Bitcoin. JP Morgan as a firm nevertheless is highly involved in blockchain through products such as Onyx and JPM Coin. JP Morgan analysts also recognized the likelihood of a spot Bitcoin ETF approval in September.

Jane Street Capital, meanwhile, is a quantitative trading firm notable for employing FTX and Alameda Research associates Sam Bankman-Fried and Caroline Ellison in the mid-2010s. However, Jane Street was founded at least a decade before the arrival of either individual and continues to operate, meaning that those ties are irrelevant to its involvement in current ETF applications.

Valkyrie Investments , which also has a pending ETF application, submitted a similar update following BlackRock. It named Jane Street Capital and the financial services firm Cantor Fitzgerald as authorized participants.

Analyst says approval is increasingly likely

Another Bloomberg ETF analyst, James Seyffart, commented on the latest updates. He suggested that an ETF approval is increasingly likely, writing :

“Obviously it’s looking more and more like this is a done deal. Would basically need the highest rungs of government to step in and stop these things from being approved.”

Seyffart added that Valkyrie’s filing describes an 80bps fee, meaning a sponsor’s fee will accrue daily by applying a 0.80% annual rate to the Trust’s Bitcoin holdings.

Dec. 29 is the final date for asset managers to make changes to their spot Bitcoin ETF applications. Many experts expect the SEC to approve a spot Bitcoin ETF by Jan. 10, 2024. The SEC is required to decide on an application from Ark Invest by that date but could approve other funds at that time.