According to CoinDesk, some of the world's largest market-making firms, including Jane Street, Virtu Financial, Jump Trading, and Hudson River Trading, are in talks to potentially provide liquidity for BlackRock's bitcoin ETF if regulators approve the product. The U.S. regulatory crackdown on crypto this year has led some U.S. firms to curtail their activity in the space. However, if the U.S. Securities and Exchange Commission approves some or all of the dozen or so applications for bitcoin ETFs, including the one from BlackRock, it would open a new pathway for U.S.-based firms to get involved in crypto in a way that plays to their conventional strengths.

Market makers are essential to ETFs, as they are responsible for creating and redeeming new shares of an ETF, a role designed to keep its price tethered to the price implied by the value of the ETF's holdings. Grayscale Investments, which has applied to convert its Grayscale Bitcoin Trust (GBTC) into an ETF, serves as an example of why such a create-and-redeem structure is important. The price of GBTC has wandered far away from the value of the billions of dollars worth of bitcoin it owns over the past few years. The SEC's decision in October not to appeal a court ruling that criticized its rejection of Grayscale's initial application is seen as boosting the odds of bitcoin ETFs becoming a reality in the U.S.