According to Blockworks, BlackRock has disclosed the identities of its intended authorized participants (APs) for its proposed spot bitcoin ETF. The company plans to tap JPMorgan Securities and Jane Street as APs, should the Securities and Exchange Commission (SEC) grant approval for their proposed fund. APs are entities allowed to create and redeem shares of an ETF, either exchanging ETF shares for a corresponding basket of securities that reflects the ETF’s holdings or exchanging them for cash.
Bloomberg Intelligence analysts James Seyffart and Eric Balchunas have been closely monitoring new S-1 filings to see which firms are chosen as APs. The disclosure is considered one of the final steps before the SEC can make its decision. Balchunas said in a research note this week that the SEC was ready to approve spot bitcoin ETF proposals that commit to cash-only creations and redemptions and have signed agreements with authorized participants.
Both Balchunas and Seyffart believe there is a 90% chance the SEC allows some firms to launch a spot bitcoin ETF in early January. The regulatory agency has a January 10 deadline to make a decision on a proposal by Ark Invest and 21Shares and could rule on similar plans by others by that date. Ark and 21Shares, as well as VanEck, refiled their S-1s on Thursday and Friday, respectively. However, neither firm has named any APs. Firms do not have to name APs until they file the effective prospectus, which includes details such as APs, fees, and other information.
