December 29 was a pivotal date for cryptocurrency investors awaiting the approval of a Bitcoin ETF, and recent developments suggest a step closer to this milestone. After more than 30 meetings, there’s a new detail indicating that approval may be on the horizon.
BlackRock has updated its iShares Spot Bitcoin ETF filing, revealing details of the expected Authorized Participant (AP) agreements. This suggests agreements with APs have been reached, and the Securities and Exchange Commission (SEC) is now in the final stages of the ETF approval process. If no unexpected negative developments occur, approval could arrive by January 10.
Bloomberg’s ETF expert Eric Balchunas highlighted the irony of JPMorgan being named as an AP alongside Jane Street, given their previous stance on cryptocurrencies. These APs, Jane Street Capital and JP Morgan Securities LLC, are now officially listed in the ETF filing.
The ETF update specifies that, in addition to initial purchases by the Core Capital Investor, the Trust will issue shares in baskets against cash deposits to APs. These transactions may also occur against Bitcoin, subject to regulatory approval. With continuous issuance of new shares, the Trust will be engaged in “distribution” as defined by the Securities Act, and the Core Capital Investor will be considered a legal underwriter.
Previously, only cash was permitted in ETF transactions, but BlackRock has completed this requirement and has also determined its Authorized Participants. Other ETF applicants must now establish their APs to move forward in the process.