In its advanced announcement the BlackRock team confirmed the amendment of the Bitcoin exchange-traded funds (ETF) to meet the compliance requirements. The revision of Bitcoin ETF demonstrated BlackRock’s commitment to expand its product offering and meet the customers’ needs.
The BlackRock officials stated that the recent amendment aimed at introducing authorized participants as per the US Securities and Exchange Commission (SEC) guideline.
BlackRock Amends its Spot Bitcoin ETF
An authorized participant (AP) is an individual or entity mandated to create and redeem shares of ETF. Last week the industry leader stated that before the SEC approved the Bitcoin ETF the assets managers were required to name authorized participants.
The report from Wall Street Journal demonstrated that the naming of the authorized participant was the last stage for the Bitcoin ETF. With the new requirement, the BlackRock team led the Bitcoin ETF hopefuls to revise their application accordingly.
For the past few months, the BlackRock team has been pushing for the approval of the Bitcoin ETF. In the previous amendment, the BlackRock team selected IBIT as the new ticker symbol for its iShares Bitcoin Trust.
The asset manager also changed its Bitcoin ETF offering from a Bitcoin option to cash only. The multiple amendments on the BlackRock S1-application aimed at meeting the regulatory requirement for offering the spot Bitcoin ETF.
SEC Demands Bitcoin ETF Hopefuls to Name an Authorized Participant
In its recent amendment, the BlackRock team named leading financial providers including JP Morgan and Jane Street as the authorized participants. Interestingly as the asset manager waged an intense war against the SEC the multiple amendments of the Bitcoin ETF demonstrated the readiness of the financial institution to expand their product offering.
The naming of the BlackRock authorized participant created heated dialogues among the industry leaders. On Friday the chief executive of JP Morgan Jamie Dimon faced criticism from the crypto proponents due to his anti-crypto stance. Citing an earlier report the CEO vowed to ban crypto if elected for a government role.
Shortly after BlackRock submitted the amended prospectus the Valkyrie team named Jane Street and Cantor Fitzgerald as their authorized participant. Following the submission of the BlackRock and Valkyrie amended S1 application the crypto community expressed their excitement that the SEC might soon provide feedback concerning the spot Bitcoin ETFs.
SEC Delays in Approving Spot Bitcoin ETF
For nearly 10 years the SEC has been against the offering of Bitcoin ETF due to noncompliance. The market regulators believed that lack of adequate measures in offering the Bitcoin ETF could lead to market manipulation and fraud.
In 2016 Grayscale filed for a spot Bitcoin ETF with the SEC. After reviewing the Grayscale Bitcoin ETF application the SEC rejected it since the asset manager failed to demonstrate adequate measures to prevent fraud and manipulative practices.
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