BlackRock Authorized Participants Are Big Guys, According To Latest Update

Key Points:

• The asset management update to the SEC filing for a Bitcoin ETF names Jane Street and JPMorgan as BlackRock authorized participants.
• Analysts see this move as a key step towards SEC approval, with a 90% chance of a spot Bitcoin ETF launch in early January.

In a crucial move towards regulatory approval, BlackRock has updated its Securities and Exchange Commission (SEC) filing for its proposed spot Bitcoin exchange-traded fund (ETF).

Read more: BlackRock’s 6th Meeting Hints at SEC Approval for Bitcoin ETF!

BlackRock Authorized Participants Were Revealed for Bitcoin ETF Proposal

The asset management giant revealed significant details on Friday, including the identification of BlackRock authorized participants (APs)—Jane Street Capital and JPMorgan Securities LLC.

While Jane Street’s involvement was anticipated, JPMorgan’s inclusion surprised industry observers, particularly in crypto circles, according to Bloomberg Intelligence ETF research analyst James Seyffart. BlackRock authorized participants play a vital role as entities permitted to create and redeem ETF shares. BlackRock‘s choice of JPMorgan and Jane Street as potential APs awaits SEC approval.

Analysts like Seyffart and Eric Balchunas from Bloomberg Intelligence have closely monitored the evolving situation, viewing AP selections as a decisive factor before the SEC makes its decision. Balchunas noted the SEC’s readiness to approve spot Bitcoin ETF proposals favoring cash-only creations and redemptions, provided agreements with authorized participants are in place.

Experts suggest a 90% chance that the SEC will permit some firms to launch a spot Bitcoin ETF in early January. The regulatory agency faces a January 10 deadline for deciding on proposals by Ark Invest and 21Shares, with potential rulings on other plans expected by the same date.

Considered by industry insiders as a final step in the application process, the disclosure of BlackRock authorized participants signifies progress in the long-awaited product’s journey after multiple reviews and amendments. BlackRock’s recent amendment, allowing for cash-only redemptions, aligns with the SEC’s criteria. The regulatory body had set a deadline for applicants to make amendments.