Invest in Global Crypto Markets with BlackRock, Van Eck, and Valkyrie

Crypto ETFs and Authorized Participants

On December 29, Asset managers BlackRock, Valkyrie and Van Eck submitted amended S-1 forms to the United States Securities and Exchange Commission (SEC) to create Bitcoin (BTC) Exchange Traded Funds (ETFs). The deadline for the SEC to consider them was January 2024.

Van Eck’s revised application stated that “Authorized Participants” (APs) will only be able to deliver and receive cash when creating and redeeming Shares. This is in line with the SEC’s preference.

BlackRock’s updated filing named Jane Street and JPMorgan Securities as APs in its proposed spot Bitcoin ETF application. BlackRock has previously mentioned that it will use a cash-only model and was the first to settle a trade on JPMorgan’s Tokenized Collateral Network service on October 11.

BlackRock initially filed for a spot BTC ETF in June, and Valkyrie followed a week later. Representatives from both BlackRock and Valkyrie held meetings at the SEC in December.

Cryptocurrency ETFs

Commenting on the BlackRock amendment, Bloomberg ETF analyst Eric Balchunas said, “Looks [like] we have our first horse […] at the starting gate,” possibly referring to the asset manager’s chances of being granted SEC approval for a cryptocurrency ETF.

Earlier this week, Balchunas said he expects the SEC to decide on the outstanding spot Bitcoin ETF filings by Jan. 10, 2024. If approved, trading would likely commence shortly thereafter, he said.

Valkyrie also appointed authorized participants in its updated S-1, selecting Jane Street Capital and Cantor Fitzgerald. In addition, StoneX Financial will serve as its lead market maker.

BlackRock, Van Eck, Grayscale, Bitwise, WisdomTree, Invesco, Galaxy, Fidelity, ARK Invest, Valkyrie, Franklin, Hashdex, Global X ETFs and Pando Asset have all submitted S-1 applications for spot Bitcoin ETFs, to be considered during a future fed meeting about crypto.