It’s been reported that BlackRock has engaged in preliminary discussions with Jane Street, Virtu Financial, Jump Trading, and Hudson River Trading, with regards to their potential involvement as market makers for a spot Bitcoin ETF.
Amid the crypto crackdown, a BTC ETF, if approved, would open a new pathway for U.S.-based firms to get a piece of the crypto action – in a way that plays to their conventional strengths.
Some of the world's largest market-making firms are in the mix to potentially provide liquidity for BlackRock's eagerly awaited bitcoin ETF if regulators approve the product, according to a person with knowledge of the matter.
Trading giants Jane Street, Virtu Financial, Jump Trading and Hudson River Trading have held talks with BlackRock about a market-making role, according to a BlackRock slide deck reviewed by the person familiar with the matter.
Assuming the U.S. Securities and Exchange Commission approves some or all of the dozen or so applications for bitcoin ETFs (including the one from BlackRock, the world's largest asset manager), that would open a new pathway for U.S.-based firms to get a piece of the action in crypto – in a way that plays to their conventional strengths. Being a market-maker for ETFs, which trade on exchanges just like stocks, requires a level of sophistication and automation that only a relatively few companies can achieve.
Market makers are vital to ETFs. They are responsible for creating and redeeming new shares of an ETF, a role designed to keep its price tethered to the price implied by the value of the ETF's holdings.
One of the best examples of why such a create-and-redeem structure is important actually comes from crypto. Grayscale Investments offers a product called the Grayscale Bitcoin Trust (GBTC) whose price has over the past few years wandered dramatically far away from the billions of dollars worth of bitcoin (BTC) that it owns.
Price Momentum
BLK is trading near the bottom of its 52-week range and below its 200-day simple moving average.
Amid the crypto crackdown, a BTC ETF, if approved, would open a new pathway for U.S.-based firms to get a piece of the crypto action – in a way that plays to their conventional strengths.
Some of the world's largest market-making firms are in the mix to potentially provide liquidity for BlackRock's eagerly awaited bitcoin ETF if regulators approve the product, according to a person with knowledge of the matter.
Trading giants Jane Street, Virtu Financial, Jump Trading and Hudson River Trading have held talks with BlackRock about a market-making role, according to a BlackRock slide deck reviewed by the person familiar with the matter.
Assuming the U.S. Securities and Exchange Commission approves some or all of the dozen or so applications for bitcoin ETFs (including the one from BlackRock, the world's largest asset manager), that would open a new pathway for U.S.-based firms to get a piece of the action in crypto – in a way that plays to their conventional strengths. Being a market-maker for ETFs, which trade on exchanges just like stocks, requires a level of sophistication and automation that only a relatively few companies can achieve.
Market makers are vital to ETFs. They are responsible for creating and redeeming new shares of an ETF, a role designed to keep its price tethered to the price implied by the value of the ETF's holdings.
One of the best examples of why such a create-and-redeem structure is important actually comes from crypto. Grayscale Investments offers a product called the Grayscale Bitcoin Trust (GBTC) whose price has over the past few years wandered dramatically far away from the billions of dollars worth of bitcoin (BTC) that it owns.
Price Momentum
BLK is trading near the bottom of its 52-week range and below its 200-day simple moving average.
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