The Race for Bitcoin ETFs: BlackRock, Valkyrie, and Van Eck File Revised Applications

BlackRock Designates Jane Street and JP Morgan Securities as Authorized Participants in Revised Filing with the SEC.

BlackRock, Van Eck, and Valkyrie have submitted last-minute amendments for Bitcoin ETFs.

The race for Bitcoin exchange-traded funds (ETFs) is heating up as asset managers BlackRock, Valkyrie, and Van Eck submitted amended S-1 forms to the United States Securities and Exchange Commission (SEC). The filings, made on the final day of consideration in January 2024, are revisions of their previous applications to create Bitcoin ETFs. 🏇

Cash is King

Van Eck’s revised application states that authorized participants (or APs), which are financial firms authorized to purchase or redeem shares with the Trust, will only deliver and receive cash. This preference for cash aligns with the SEC’s requirements, making Van Eck a strong contender in the race. 💰

In a similar vein, BlackRock’s updated filing named Jane Street and JPMorgan Securities as authorized participants in its proposed spot Bitcoin ETF application. BlackRock has already publicly stated that they will follow a cash-only model. The asset management giant was also the first user to settle a trade on JPMorgan’s Tokenized Collateral Network service. With their reputation precedenting them, BlackRock is certainly a frontrunner in the competition. 📈

The Early Birds

BlackRock initially filed for a spot Bitcoin ETF in June, closely followed by Valkyrie a week later. Both companies have actively engaged with the SEC, attending meetings in December to discuss their applications. This level of commitment and effort demonstrates their determination to be pioneers in the Bitcoin ETF arena. 🚀

• Solana Emerges as a Fierce Competitor to Ethereum in DEX Volume
• Bitcoin Price Predictions Soar as BTC Surpasses $43,000
• Bitcoin and Ethereum Price Outlook BTC Rises 2% and ETH Surpasses $2,300

A Horse at the Starting Gate

Bloomberg ETF analyst Eric Balchunas commented on BlackRock’s amendment, “Looks [like] we have our first horse at the starting gate.” Balchunas’ remark suggests that BlackRock may have a significant chance of gaining SEC approval. This positive sentiment underscores BlackRock’s position as a leading player in the race. 🏇

Balchunas has also predicted that the SEC will make a decision on the outstanding spot Bitcoin ETF filings by January 10, 2024. If the ETFs receive approval, trading is likely to commence shortly thereafter. This news adds to the excitement and anticipation surrounding the potential launch of these groundbreaking investment products. ⏰

Key Players and Strong Contenders

Valkyrie, another major player, has appointed Jane Street Capital and Cantor Fitzgerald as authorized participants in their updated S-1. Additionally, StoneX Financial will serve as their lead market maker. These strategic partnerships further solidify Valkyrie’s position as a strong contender in the Bitcoin ETF race. 💪

In addition to BlackRock, Valkyrie, and Van Eck, several other prominent asset managers and firms have also submitted S-1 applications for spot Bitcoin ETFs. These companies, including Grayscale, Bitwise, WisdomTree, and ARK Invest, are all vying for a chance to offer the first Bitcoin ETF in the market. The competition is fierce, and the race is on! 🏆

🤔 Q&A: What Else Do You Need to Know?

Q1: What is the significance of these revised applications?

A1: The revised applications showcase the asset managers’ commitment to meeting the SEC’s requirements for Bitcoin ETFs. By aligning with the SEC’s preference for cash settlements and engaging in meetings with the regulatory body, these companies are increasing their chances of gaining approval.

Q2: What are the benefits of a Bitcoin ETF?

A2: Bitcoin ETFs would provide investors with an opportunity to gain exposure to Bitcoin without directly owning the cryptocurrency. They offer a more regulated and accessible investment vehicle that can attract institutional investors and retail traders alike.

Q3: When can we expect the SEC to make a decision?

A3: Bloomberg ETF analyst Eric Balchunas predicts that the SEC will announce its decision on the outstanding spot Bitcoin ETF filings by January 10, 2024. If approved, trading could commence shortly thereafter.

Q4: Who are the market leaders in the Bitcoin ETF race?

A4: BlackRock, with its extensive financial expertise and track record, is widely considered a frontrunner amongst the asset managers. Valkyrie, Van Eck, Grayscale, Bitwise, and WisdomTree are also strong contenders, having submitted their S-1 applications for spot Bitcoin ETFs.

Analyzing the Future of Bitcoin ETFs

The submission of revised applications by BlackRock, Valkyrie, and Van Eck marks a significant milestone in the journey towards Bitcoin ETFs. While the SEC’s decision is yet to be announced, the strong interest and efforts of these asset managers indicate the growing acceptance and recognition of Bitcoin in the traditional financial world.

If approved, Bitcoin ETFs have the potential to revolutionize the investment landscape by unlocking a new wave of capital and participation. Institutional investors and retail traders, who may have been hesitant to enter the cryptocurrency market directly, can now gain exposure to Bitcoin through regulated and accessible investment products. This increased adoption could lead to improved market liquidity, price stability, and broader acceptance of Bitcoin as a mainstream asset.

However, it’s important to note that investing in Bitcoin, even through ETFs, carries its own risks. The crypto market is volatile and subject to regulatory changes, technological advancements, and macroeconomic factors. Investors should carefully evaluate their risk tolerance and conduct thorough due diligence before making any investment decisions.

References:

1. Bitcoin Price Regains Strength, but BTC Still Remains in a Range for 2024

2. Here’s What Happened in Crypto Today

3. VanEck Launches Media Campaign after Claiming It ‘Would Rather Buy and Hold Bitcoin’

4. Bitcoin Erases Recovery as Miners Cash Out 3,000 BTC

5. First Mover: Americas’ Optimisms OP Solana Rally

6. Hashdex Drops New Ad Spot Ahead of Potential Spot Bitcoin ETF Approval

7. Bitcoin ETF Countdown: SEC’s Decisive December Deadline – Here’s the Latest

8. FTX Debtors Release Estimated Values of Cryptocurrency Claims, Bitcoin Priced at 16,871 Per Coin

📢 Share this article with your friends and colleagues to keep them informed about the latest happenings in the Bitcoin ETF race. Let’s get the conversation started! 💬

We will continue to update Blocking; if you have any questions or suggestions, please contact us!