BlackRock and Valkyrie Update Spot Bitcoin ETF Application: Key Details Highlighted?

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• Asset manager BlackRock and Valkyrie updated their S-1 applications for a Bitcoin Exchange Traded Fund (ETF) on Friday, ahead of the SEC’s final submission deadline.
• An update in Valkyrie’s updated S-1 application naming Jane and Cantor as Authorized Participants (APs) also made headlines.
• In previous statements, Dimon expressed skepticism about cryptocurrencies and reportedly said, ‘If I were the government, I would shut it down.’

Asset manager BlackRock and Valkyrie updated their spot Bitcoin ETF application: What details stand out in this filing update?

BlackRock and Valkyrie Update ETF Filings

Asset manager BlackRock and Valkyrie updated their S-1 applications for a Bitcoin Exchange Traded Fund (ETF) on Friday, ahead of the SEC’s final submission deadline. The recent updates mark the fifth amendment for both BlackRock and Valkyrie.

Bloomberg’s Senior ETF Analyst Eric Balchunas noticed a document where BlackRock specified the names of its Authorized Participants (AP). Jane Street and JPMorgan were named as APs. This makes BlackRock the first company to officially disclose AP details in a Bitcoin ETF application.

An update in Valkyrie’s updated S-1 application naming Jane and Cantor as APs also made headlines. Alongside BlackRock, they now stand among the first applicants to officially disclose their APs. According to experts, S-1 requirements had not mandated applicants to disclose AP names yet.

Balchunas pointed out the ‘irony’ in BlackRock choosing JPMorgan as an AP in the filing, as JPMorgan CEO Jamie Dimon has been openly critical of cryptocurrencies. Dimon has expressed skepticism about cryptocurrencies in previous statements, saying, “If I were the government, I would shut it down.”

Latest Submissions and the Upcoming Deadline with ‘Cash Creation’ Questions

The Securities and Exchange Commission (SEC) had set December 29 as the deadline for Bitcoin ETF applicants to submit their final amendments for spot Bitcoin ETFs. This deadline coincided with questions specifically related to the ‘Cash Creation’ model. The SEC mandates the ‘Cash Creation’ model for spot Bitcoin ETFs, and many applicants are now transitioning to a model that aligns with the regulator’s preference.

On Friday, fund manager VanEck also submitted an updated application for a spot Bitcoin ETF and launched a new advertising campaign called “Born for Bitcoin.” Another key player in the spot ETF race, Grayscale Investments, submitted a corrected filing to the SEC on Tuesday. This filing came shortly after Barry Silbert stepped down as the president of Grayscale Investments.