JP Morgan Chase: From being short on Bitcoin to joining hands with BlackRock

Author: Tyler Durden@Zerohedge, compiled by: Qin Jin Carbon Chain Value

Remember Jamie Dimon (Jamie Dimon) yells that Bitcoin is “a scam that will eventually explode,” that “if he were the government, he would shut down Bitcoin,” and that the only “real uses of cryptocurrencies are crime, drug trafficking, money laundering, and tax avoidance.” ?

It turns out that the bank, which has already paid out $40 billion in fines, fines and legal damages, is a repeat criminal enterprise that has decided to double down on crime by its own definition...

Today we learned that it is not one family, but two families Mega asset manager Invesco, as well as BlackRock, the world’s largest asset manager and the Fed’s own trading platform, have designated JPMorgan as their authorized participant, or intermediary, through which the ETF can first be converted into cash to achieve and vice versa.

In addition to JPMorgan Chase, BlackRock also appointed Jane Street Capital--Sam Bankman-Fried (Sam Bankman-Fried) It was at this fund house that I learned all I knew about high-frequency trading in the Bitcoin market, leading to becoming the greatest crypto criminal of all time — as the broker responsible for its spot Bitcoin ETF gaining approval from the U.S. Securities and Exchange Commission in January. SEC) to guide cash in and out after approval.

JPMorgan will become an authorized participant in the BlackRock iShares Bitcoin Spot ETF and the Invesco Galaxy Bitcoin ETF, according to a revised prospectus filed with the U.S. Securities and Exchange Commission late Friday. As such, they will be responsible for handling the creation and redemption of ETF baskets of stocks, as well as cash transfers between fund managers.

Or, as we say....

In addition to BlackRock, Wall Street’s ETF giants such as Invesco, Franklin Templeton and Fidelity have also applied for spot Bitcoin ETFs. Grayscale Investments has also applied to convert its Grayscale Bitcoin Trust into an ETF. All of these applications are expected to be approved in the coming weeks.

As an aside, this is likely due to JPMorgan’s insistence that the SEC require Bitcoin ETFs to create redemptions in cash, rather than in-kind redemptions. According to Bloomberg reporter Eric Balchunas, the reason why the U.S. Securities and Exchange Commission prefers the cash model of Bitcoin ETF spot is to minimize exposure to actual Bitcoin during the redemption and issuance process. number of intermediaries.

They don’t like brokers as intermediaries with exposure to Bitcoin, Balchunas noted. The ETF analyst said: Many people intend to create unregistered subsidiaries to replace actual brokers, but the SEC does not want this.

The U.S. Securities and Exchange Commission wants to “close the loop a little more,” Balchunas said, and he’s also heard regulators are worried about money laundering.

He said: If only BlackRock and Coinbase were handling actual Bitcoin, then the Bitcoin you own would be more controllable. They just want a more closed system with fewer intermediaries exposed to actual Bitcoin.

Of course, if JPMorgan Chase (which has been fined $40 billion over the past 15 years) facilitates money laundering, then all is well.

While JPMorgan has been designated as the AP (broker) for two of the ETFs so far, Jane Street Capital appears to be the AP for nearly all of them, meaning that over the next few years Here, Jane Street Capital will do the front running of all ETF orders. If Sam Bankman-Fried stayed at Jane Street Capital, he would probably become a trillionaire and it would be completely legal. of.

As for stupid farmers like the one below, who gleefully claimed just a few weeks ago that even bank CEOs were on her side in her stupid anti-crypto crusade.... ..

The joke reached " "Pocahontas" is on...

"Pocahontas" is an animated film produced and released by Walt Disney in 1995. Its first release date was June 16, 1995. The real name of Pocahontas (Pocahontas in the film) is Matoaka. Pocahontas is actually her nickname, which means playful and naughty.

According to Reuters, as of late Friday afternoon, BlackRock Asset Management, VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco Ltd., Wells Fargo Fund Management, Fidelity ), WisdomTree Investments and a joint venture between Ark Investments and 21Shares have all submitted new documents to regulators detailing their arrangements with market makers to ensure trading liquidity and efficiency.

Issuers that file before the revised year-end filing deadline may launch the Ark/21Shares ETF before Jan. 10, a date by which the U.S. Securities and Exchange Commission must approve it, people familiar with the filing process said Or veto the Ark/21Shares ETF.

Given the confidential nature of the discussions, the SEC could notify issuers as soon as Tuesday or Wednesday that they have been cleared to launch products next week, the sources said.

Bitcoin’s price has more than doubled this year to just under $42,000, in part due to expectations that the U.S. Securities and Exchange Commission will soon approve a spot Bitcoin ETF.

If regulators choose to approve a spot Bitcoin ETF, they could notify issuers as early as next week.

Valkyrie also disclosed in the filing that it would impose a 0.80% management fee on the ETFs if the SEC approves the products early in the new year. Ark and 21Shares have previously disclosed that they plan to charge the same fees for their ETFs.

Fidelity Wise Origin Bitcoin Fund is expected to be the cheapest fund, with fees of only 0.39%.

Invesco announced plans to charge a 0.59% fee, but added in a filing that it would waive fees for six months on the first $5 billion in assets attracted by the new fund.

Currently, a total of 14 asset management companies hope to eventually obtain approval for a spot Bitcoin ETF from the U.S. Securities and Exchange Commission (SEC). U.S. securities regulators have repeatedly rejected such offerings over the past decade, citing concerns about market manipulation and the inability of would-be issuers to protect investors. To date, the only approved cryptocurrency ETFs are tied to Bitcoin and Ethereum futures contracts traded on the Chicago Mercantile Exchange.

Grayscale Investments and Hashdex, both looking to convert existing products into spot Bitcoin ETFs, submitted updates of their own earlier this month.

The SEC did not immediately respond to a request for comment.