American investment management firm BlackRock has updated its spot Bitcoin ETF prospectus. The firm’s BTC ETF, dubbed the iShares Bitcoin Trust (IBIT), remains the largest in the market per Assets Under Management (AUM) besides the Grayscale Bitcoin Trust (GBTC).
What is New With BlackRock Spot Bitcoin ETF?
According to an update shared by Bloomberg’s Senior ETF Analyst Eric Balchunas, BlackRock updated the spot Bitcoin ETF prospectus with the list of major Wall Street banks as Authorized Providers (APs).
Per the screenshot of the updated filing, BlackRock has now named Swiss multinational banking giant UBS, and American financial giants Goldman Sachs, Citigroup, and Citadel as first-time entrants into the ETF market. This inclusion now places these financial giants alongside JPMorgan and Jane Street among others currently serving as APs to BlackRock.
JUST IN: BlackRock updated its bitcoin ETF prospectus w/ many new Authorized Participants incl first-timers Citadel, Goldman Sachs, UBS, Citigroup. Takeaway: big time firms now want piece of action and/or are now OK being publicly associated w this. H/t @akibablade @CryptoSlate… pic.twitter.com/z5Ntb43VhO
— Eric Balchunas (@EricBalchunas) April 5, 2024
Authorized Participants are important players in the exchange-traded fund marketplace as they manage the creation and redemption of ETFs in the market. As much as there is competition in the broader ETF market, so also is there competition among mainstream banks to join and act as APs for spot Bitcoin ETF issuers.
Jane Street for instance serves as AP for more than BlackRock. It also serves Grayscale’s GBTC, Franklin Templeton, Bitwise, and Valkyrie amongst others. According to Eric Balchunas, this inclusion of bigger banks is major proof that there is a growing demand to join the ETF bandwagon by the mainstream traditional finance players.
Changing Terrain in Bitcoin Adoption
The tide is changing drastically with respect to the adoption of Bitcoin across the board. While some banks were cautious about adopting BTC a few years back, the approval of spot Bitcoin ETF in January ushered in a paradigm shift for the cryptocurrency.
Earlier, Coingape reported that Asher Genoot, the CEO of Bitcoin mining firm Hut 8 confirmed that mainstream or Wall Street banks have been approaching the company for Bitcoin acquisition. This demand, he attributed to a supply crunch on trading platforms due to the spot Bitcoin ETF success.
With more APs joining the foray, the supply crunch is poised to grow stronger, creating an ultimately bullish upside for Bitcoin in the long term. At the time of writing.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
BlackRock, a heavyweight asset manager, and financial firm Valkyrie updated their S-1 filings for a Bitcoin Exchange-Traded Fund (ETF) before the SEC deadline on Friday. The latest updates marked BlackRock’s and Valkyrie’s fifth amendments, respectively.
Bloomberg’s senior ETF analyst, Eric Balchunas, noted that BlackRock disclosed the names of its Authorized Participants (APs) in the document. It named Jane Street and JPMorgan as its APs. This positions BlackRock as the first Bitcoin ETF applicant to reveal its AP details. Within minutes, an update that Valkyrie named Jane and Cantor as its APs in updated S-1 filing hit the news. Along with BlackRock, they are now among the first contenders to officially reveal the APs. As per experts, the S-1 requirements didn’t mandate the applicants to reveal their AP names just yet.
Balchunas noted the ‘irony’ in BlackRock selecting JPMorgan as an AP in the filing, given that JPMorgan CEO Jamie Dimon has been a vocal critic of cryptocurrencies. In previous statements, Dimon has expressed skepticism about crypto, reportedly saying, “If I was the government, I’d close it down.”
Deadline looms with ‘Cash Creates’ Queries
The Securities and Exchange Commission (SEC) had set December 29 as the final deadline for ETF applicants to submit their last amendments for spot Bitcoin ETFs in S-1 filings. The deadline also loomed with questions about the cash-only model. The SEC mandates a “Cash Creates” model for spot Bitcoin ETFs. And many applicants have now adapted to the regulator’s preference.
On Friday, fund manager VanEck also submitted an updated filing for its spot Bitcoin ETF, coinciding with the launch of its new advertising campaign titled “Born to Bitcoin.”
Grayscale Investments, another key player in the spot ETF race, submitted an amended filing to the SEC on Tuesday. This filing came shortly after Barry Silbert, Grayscale Investments’ chairman, stepped down from his role.
Also Read: Bloomberg Analyst Corrects Crucial Spot Bitcoin ETF Misconception
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: