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Developments within the Bitcoin ecosystem are in full swing with top financial players in the race for the first spot Bitcoin ETF in the US. On Friday, September 29th, top applicants including BlackRock, Invesco, WisdomTree, Valkyrie, Bitwise, and Fidelity all submitted updated S1 applications.
Bitwise vs. Blackrock in the Bitcoin ETF Race
Commenting on recent developments, Eric Balchunas, senior ETF analyst at Bloomberg, said: report Bitwise has formally filed its S-1 Form; The document reveals notable initiatives, including an impressive $200 million allocated to seed the Bitwise ETF ($BITB).
This significant investment exceeds BlackRock’s known seed capital of $10 million. The identity of the entity making this significant commitment has not yet been revealed, but the $200 million injection is likely to provide significant support in the early stages of the ETF race. At this time, the application does not include the names of authorized participants (APs), but this is expected to be disclosed in the near future.
Seed capital constitutes the initial capital required to launch an ETF and makes it accessible to investors. This financial resource will support the creation of units that will form the basis of the ETF and will also help facilitate the offering and trading of shares on the public market. Traditional sources of seed funding have primarily been banks and broker-dealers, but some ETFs have also utilized self-seeding strategies in the past.
JP Morgan as BlackRock’s AP
BlackRock disclosed in its Fifth Amendment that Jane Street and JPMorgan are authorized participants (APs) in its ETFs. JP Morgan’s inclusion as an AP is notable, but has raised some eyebrows, especially in the wake of CEO Jamie Dimon’s critical comments regarding cryptocurrencies.
Just three weeks after Dimon’s statement to Congress characterizing Bitcoin as a tool for criminals, drug traffickers, and money launderers, his company is now an accredited participant in the BlackRock Bitcoin ETF. There is.
This development highlights the disconnect between the bank’s organizational activities and the public position of its leaders. In the current regulatory landscape, JPMorgan’s role is particularly important, as its strong market presence in the investment banking sector can contribute to the credibility and stability of the ETFs it supports.
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