Bitcoin ETF: BlackRock, Fidelity and other applicants elect their brokers

As the prospective dates for approval of Bitcoin Spot ETFs approach, BlackRock, Fidelity, Valkyrie, Bitwise and other applicants for authorization of these financial instruments are fine-tuning their dossiers. Lately, many of them have once again filed documents in which they designate the “authorized participants” for their trackers.

The cream of the crop of brokers for Bitcoin Spot ETFs

Aside from the multiplication of meetings with the SEC, BlackRock, one of the financial behemoths seeking the green light for the BTC cash ETF, has launched a new product: the Bitcoin cash ETF. The aim: to stand out from other candidates and reassure financial market regulators.

But according to the latest news, BlackRock, like other asset managers interested in Exchange Traded Funds, have added further documents to their initial request.

BlackRock named Jane Street and JPMorgan as the broker-dealers who will be responsible for steering cash into and out of its spot-Bitcoin ETF should it be approved by US regulators https://t.co/w2pMXfHTl7

— Bloomberg Crypto (@crypto) December 29, 2023

“BlackRock has appointed Jane Street and JPMorgan as brokers to manage the liquidity inflows and outflows of its Bitcoin spot ETF, if it is approved by US regulators.”

This Bloomberg article states that BlackRock, Fidelity and other applicants have just named “authorized participants” for their Bitcoin cash ETF. They are Jane Street Capital, Cantor Fitzgerald & Co. and JPMorgan Securities.

The term “Authorized Participant” (AP) refers to a company that manages ETF cash inflows and outflows. Generally speaking, BlackRock and the other applicants are not authorized to buy bitcoins (BTC) themselves: this task will fall to the “APs”.

Here are some details on these appointments:

• BlackRock has selected Jane Street and JPMorgan;
• Fidelity and WisdomTree have selected Jane Street Capital;
• Valkyrie has selected Jane Street and Cantor as its “AP”;
• Etc.

According to CoinDesk, BlackRock and Valkyrie filed their respective Form S-1s with the Securities and Exchange Commission last Friday. VanEck & Ark and 21Shares refiled on Thursday and Friday.

As a reminder, yesterday, December 29, was the deadline for this type of operation.