BlackRock Adds JPMorgan to ETF Filing as Bitwise Gets $200M Seed Capital
Bitwise leads the US Bitcoin ETF race with $200M capital, as BlackRock partners with skeptical JPMorgan, showcasing finance's crypto shift.
Major financial firms compete to launch the first US Bitcoin ETF, with key players like BlackRock, Invesco, and Fidelity revising their applications. Bitwise has recently filed its S-1 form, revealing a $200 million seed capital, surpassing BlackRock's $10 million seed capital. The investor's identity behind Bitwise's significant funding is unknown, but this large sum gives Bitwise a strong start in the race.
Seed capital is crucial for launching an ETF, enabling it to be accessible to investors and aiding the creation of units that form the foundation of the ETF. Although these funds are traditionally provided by banks, some ETFs now use self-seeding strategies.
In an unexpected event, BlackRock announced JPMorgan as its Authorized Participant (AP) in their updated ETF filing, This was surprising because the JPMorgan CEO is known for his critical view of Bitcoin. This involvement of a major bank, known for its skeptical stance on cryptocurrencies, adds credibility to the ETF and highlights the evolving relationship between traditional finance and the crypto world.
