Invesco, WisdomTree, Fidelity, and Bitwise Updated S-1 Filings; JPMorgan in Spotlight as AP

The US securities regulator received a flurry of S-1 filings by Bitcoin Exchange-Traded Fund (ETF) applicants. Invesco Galaxy, WisdomTree, Fidelity and Bitwise joined the group submitting their revised filings to the SEC on Friday, reported Bloomberg’s senior ETF analyst Eric Balchunas.

December 29 marked the last day to amend the spot Bitcoin ETF application with the regulator. BlackRock and Valkyrie also made the submissions on the final day.

Amendments poured in before deadline

All key Bitcoin ETF contenders are seemingly ready for potential approval with unique strategies. Balchunas reported that Invesco Galaxy has waived fees for the first six months and the first $5 billion in assets.

Additionally, Invesco Galaxy has named Virtu and JPMorgan as its Authorized Participants (APs). What is particularly interesting about these amended filings is that APs have been revealed without a mandate.

It was the fourth S-1 amendment by Invesco Galaxy.

WisdomTree followed suit with its fifth amended S-1 filing. It has also reportedly appointed Jane Street as its AP.

Fidelity’s S-1 filing offered a competitive fee structure at 0.39%. It was reported to be the lowest among the lot before Invesco Galaxy jumped in. Like WisdomTree, Fidelity also chose Jane Street as its AP.

Meanwhile, Bitwise’s filing mentions an unnamed entity that is set to inject $200 million into the fund. Balchunas notes that the large funding would dwarf BlackRock’s known $10 million seed money. Bitwise has not yet named its AP, but an announcement might come later.

JP Morgan and Jane Street stand out

On Friday, BlackRock and Valkyrie, both influential players in the financial sector, also updated their S-1 filings. BlackRock, in its fifth amendment, disclosed Jane Street and JPMorgan as its APs. Valkyrie named Jane and Cantor as its APs.

JPMorgan’s involvement as an AP in at least two ETF applications stands out, especially considering CEO Jamie Dimon’s critical stance on cryptocurrency.

This also signals a divergence between the bank’s institutional operations and its leadership’s public views. In the current regulatory environment, JPMorgan’s role will be particularly significant. JPMorgan, known for its strong market presence as an investment bank, can bring a level of credibility and stability to the ETFs it supports.

Similarly, Jane Street has gained the trust of four players as an AP. Jane also has expertise in market-making and trading as a capital market business. It is known to offer efficiency in trading strategies.