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Bitcoin (BTC) and the rest of the cryptocurrency market’s developments continue at full speed with the top financial players competing for the first spot Bitcoin ETF in the US. Leading ETF issuers such as BlackRock, Invesco, WisdomTree, Valkyrie, Bitwise, and Fidelity all submitted their updated S-1 filings to the US Securities and Exchange Commission (SEC) on September 29.
Bitcoin ETF Race: Bitwise vs BlackRock
Bloomberg’s senior ETF analyst Eric Balchunas reported that Bitwise officially submitted its updated S-1 filing to the US regulator SEC. The updated filing indicates a significant commitment, with Bitwise’s ETF (BITB) being funded by an impressive initial capital of $200 million.
With this initial capital, Bitwise has managed to exceed BlackRock’s known $10 million initial capital. Although the identity of the institution making this substantial commitment has not been disclosed, the $200 million fund injection is expected to provide significant support in the early stages of the ETF race. While the name of the authorized participant (AP) has not been disclosed in the application, it is expected to be revealed in the near future.
Core capital forms the necessary initial funding for an ETF’s launch, making it accessible to investors. This financial resource also helps support the creation of the units that form the ETF’s foundation, facilitating the supply and trading of the ETF’s shares on the open market. While traditional sources of initial capital are predominantly banks and broker-dealers, self-funding strategies have been observed in a few ETFs in the past.
BlackRock’s AP is JPMorgan
BlackRock revealed in its fifth amendment to the spot ETF application that Jane Street and JPMorgan are APs for its ETFs. The inclusion of JPMorgan as an AP in the ETF application is particularly noteworthy, especially after CEO Jamie Dimon targeted Bitcoin with harsh words.
Just three weeks after Dimon’s declaration in front of the US Congress that he sees Bitcoin as a tool for criminals, drug traffickers, and money launderers, his company was listed as an AP for BlackRock’s spot Bitcoin ETF.
This development highlights the discrepancy between the bank’s corporate activities and the views of its management. Nevertheless, the importance of JPMorgan’s role in the current regulatory environment is significant due to the bank’s strong market presence in the investment banking sector, which adds credibility and stability to the ETFs it supports.
