A recent amendment to BlackRock's spot Bitcoin ETF Form S-1 submitted to the SEC on April 5 revealed that they have added Citi, Citadel, Goldman Sachs, and UBS as authorized participants (APs) for this fund. This brings the total number of APs for the asset manager's Bitcoin-based fund to nine.

BlackRock, known as the world's largest asset manager, included more Wall Street firms to be APs for its spot Bitcoin ETF. The recent disclosure was made through an amendment attached to the ETF's Form S-1 which was submitted to the SEC. This update follows the submission of amended S-1 forms by BlackRock and other firms for their Bitcoin ETF applications, marking a significant development in the U.S. Bitcoin ETF journey.

With the amendments, sponsor fees and strategic adjustments were disclosed, shedding light on the financial structures upholding these possible spot Bitcoin ETFs. For example, BlackRock set a 0.3% sponsor fee, with a reduced rate of 0.2% for the first year or until the ETF grows to $5 billion in assets. In contrast, VanEck chose a long-term fee of 0.25%, and WisdomTree opted for a higher 0.5% fee. Additionally, ARK Invest and 21Shares announced they would waive their 0.25% fee for the first $1 billion in transactions.

Authorized participants are crucial in the ETF market as they create and redeem ETF shares to ensure liquidity. Their role helps maintain ETF prices in line with the net asset value of the underlying assets. For instance, APs obtain the needed underlying assets to form ETF shares and receive a package of shares known as a creation unit.

Despite the positive movements in the Bitcoin ETF space, the future fate of these applications and their implications on the cryptocurrency market will mostly be determined in the coming weeks and months.

SEC's Assessment of Ethereum ETFs

The SEC has initiated a public comment phase for three proposed Ethereum spot ETFs on April 4, a significant step in the potential approval process for these ETFs. Grayscale Investments, Fidelity, and Bitwise are all seeking to launch these ETFs.

The speculation surrounding an Ethereum ETF has increased since the approval of spot Bitcoin ETFs. However, analysts are less optimistic about Ethereum ETF approval due to the SEC's historical aversion to such offerings and the complexities related to Ethereum’s classification as a security. ETH Foundation scrutiny by the SEC and Chairman Gary Gensler's implied exclusion of other crypto assets in the Bitcoin ETF's approval have added to the uncertainty surrounding Ethereum ETF deliberations.

While some view the potential delay in Ethereum ETF approvals negatively, others see it as an opportunity for traditional finance to gradually adapt to Bitcoin, potentially easing the way for Ethereum-based products. Entities like ConsenSys advocate for the approval and widespread acceptance of Ethereum-based products by highlighting Ethereum's robust security measures designed to address regulatory concerns and facilitate the approval process.