1. 💎 BlackRock's Intended Authorized Participants💎:
BlackRock has disclosed plans to involve JPMorgan Securities and Jane Street as its authorized participants for their proposed spot Bitcoin ETF, pending approval from the SEC.
2. 💎Role of Authorized Participants💎:
APs are entities permitted to create and redeem ETF shares, exchanging them either for a basket of securities reflecting the ETF's holdings or for cash.
3. 💎Monitoring by Bloomberg Analysts💎:
Analysts James Seyffart and Eric Balchunas from Bloomberg Intelligence have been closely tracking new S-1 filings to identify selected firms as APs. This disclosure is seen as a crucial step preceding the SEC's decision.
4. 💎SEC's Expected Approval Criteria💎:
Balchunas mentioned SEC's readiness to approve spot Bitcoin ETF proposals that commit to cash-only creations and redemptions while having agreements with authorized participants.
5. 💎High Likelihood of SEC Approval💎:
Both Balchunas and Seyffart estimate a 90% chance that the SEC will permit some firms to launch a spot Bitcoin ETF in early January.
6. 💎Deadline for SEC Decision💎:
The SEC faces a January 10 deadline for Ark Invest and 21Shares' proposal and could rule on similar plans by other firms by that date. Ark, 21Shares, and VanEck have refiled their S-1s,
but only BlackRock disclosed its chosen APs.
7. 💎Details in Effective Prospectus💎:
Firms are not obliged to name APs until they file the effective prospectus, which contains comprehensive information such as AP details, fees, and other pertinent information.
8. 💎Strategic Significance of AP Selection💎:
The selection of APs is a critical aspect of ETF creation and redemption, impacting liquidity,
narket efficiency, and the overall functioning of the ETF.
9. 💎Industry's Focus on Regulatory Decisions💎:
The analysis of SEC decisions highlight the significant impact that approval or denial of a spot Bitcoin ETF can have on the crypto market and its integration with traditional finance.
