- Valkyrie has listed Jane Street and Cantor Fitzgerald as authorized participants.
- BlackRock is collaborating with JP Morgan and Jane Street.
BlackRock and Valkyrie have disclosed authorized participants for their anticipated Bitcoin exchange-traded funds (ETFs). BlackRock has aligned with JP Morgan and Jane Street to navigate restrictions related to crypto purchases.
Valkyrie, another significant ETF contender, has enlisted Jane Street as its authorized participant. Besides that, the asset management firm has selected Cantor Fitzgerald. This choice of multiple authorized participants hints at the potential for similar strategies among other ETF issuers, Coindesk reported.
This disclosure arrived via updated S-1 filings submitted to the SEC. Notably, while this disclosure is not mandatory, it highlights the partners these firms have chosen for Bitcoin acquisition for their potential ETFs.
In October, BlackRock settled with the SEC for alleged inaccuracies in disclosing investments in the entertainment industry, agreeing to a $2.5 million fine. This development, as reported by The Distributed, coincided with the anticipation surrounding the SEC’s assessment of an application by the asset management firm for a Bitcoin ETF.
See Related: BlackRock Bitcoin ETF’s Outline Market Manipulation Control
Bitcoin ETF Speculation
The SEC’s history of rejecting Bitcoin ETF proposals due to concerns over cryptocurrency market manipulation contrasts with the potential influence of a possible approval of the application by BlackRock.
Meanwhile, Fidelity entered the ETF arena by filing for an ETF centered on Ethereum’s ether (ETH) in November. This filing mirrored BlackRock’s foray into mainstream digital asset investments.
In a regulatory filing, Fidelity unveiled its plans for the Ethereum-focused ETF, aligning with BlackRock’s initiative to diversify investment options into digital assets. The ongoing trend among major asset managers to explore ETFs for Bitcoin and Ethereum showcases a growing interest in cryptocurrency-based financial products.
The crucial factor determining the fate of these ETFs will be determined by the regulator. Its decision will significantly impact the accessibility and legitimacy of digital asset-based ETFs in the broader market. Additionally, the SEC’s approval could cause a surge of fresh investments into the crypto space.
