Posted:
- Major Wall Street institutions submitted their S-1 forms as 2023 came to a close.
- Expectations for ETF adoption increased, but BTC’s price remained stagnant.
One of the biggest reasons cited for BTC’s recent growth is the expectations surrounding different Bitcoins [BTC] ETFs. As the year draws to a close, institutions are getting closer to realizing their ETF dream.
It’s raining S-1s
In a crucial move, asset management powers BlackRock, Valkyrie and Van Eck have filed amended S-1 forms with the US Securities and Exchange Commission (SEC).
These amendments serve as crucial revisions to their original proposals, all aimed at creating Bitcoin (BTC) exchange-traded funds (ETFs) with ticker symbols that reflect Bitcoin’s spot price, which currently stands at $42,544.09.
BlackRock’s updated filing identifies Jane Street and JPMorgan Securities as “authorized participants” in the proposed spot Bitcoin ETF filing.
For context, authorized participants (APs) are entities approved to participate in the creation and redemption of shares in an ETF. They play a key role in maintaining ETF liquidity and ensuring market efficiency.
BlackRock has clearly stated that it uses a cash-only model, making it the first user to settle a transaction on JPMorgan’s Tokenized Collateral Network service on October 11.
After initially filing for a BTC ETF in June, BlackRock representatives held two meetings with the SEC in December, underscoring the strategic importance of their endeavor.
Bitwise goes all-in
In addition, Bitwise has also filed for an S-1. The recently filed Bitwise S-1 signals a significant commitment, with an apparent individual poised to inject $200 million into $BITB, surpassing BlackRock’s known $10 million contribution.
This substantial financial support is expected to provide substantial support in the early stages of the competition. While the Authorized Participant (AP) has not been made public at this time, it will likely be revealed soon.
Bitwise S-1 has been filed and it looks like someone (I wonder who) is going to seed $BITB by $200 million, which blows away BlackRock’s $10 million (as far as we know). That will be a huge help in the early days of the race. No AP mentioned, but likely available soon. pic.twitter.com/hQ7uW9Occo
— Eric Balchunas (@EricBalchunas) December 29, 2023
Then Fidelity also took action. Fidelity’s recently filed S-1 is notable for the explicit details of its fee structure, set at a remarkably low 0.39%, the most competitive rate seen to date.
Additionally, the document identifies Jane Street as the Authorized Participant (AP). Fidelity’s comprehensive submission signals its willingness to actively participate in the evolving landscape.
Fidelity’s S-1 is so wow, it included the fee which will be 0.39%, by far the lowest yet, and also names Jane Street as AP. Fidelity is officially ready to party. pic.twitter.com/Taq32IGB0L
— Eric Balchunas (@EricBalchunas) December 29, 2023
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Bloomberg ETF analyst Eric Balchunas anticipated the SEC’s decision on outstanding spot Bitcoin ETF applications on January 10, 2024, with potential trading to begin shortly thereafter.
Despite the rise in optimism, BTC’s price did not see much movement.