These big players want to back BlackRock's Bitcoin ETF

BlackRock is preparing to launch its Bitcoin ETF. Behind the scenes, they are having funding discussions with big names on Wall Street.

BlackRock is in the midst of preparations for the launch of a Bitcoin Spot ETF of its own. The world's largest asset manager is reportedly getting support from Wall Street. This reports the crypto medium Coindesk and refers to sources from around the company.

According to the report, trading heavyweights such as Jane Street, Virtu Financial, Jump Trading and Hudson River Trading will provide liquidity for BlackRock's Bitcoin ETF. In addition, Coindesk reports that BlackRock is in talks with the trading firms about possible roles as market makers. The firms have not yet responded.

BlackRock looking for startup investors

BlackRock made changes to its ETF application in mid-October. In it, the asset manager also announced that it was looking for start-up investors. It wants to use the capital raised to drive the ETF's trade launch. Specifically, the asset manager wants to buy Bitcoin and issue shares in the ETF to investors in exchange. In the application, the company set an end-October deadline for the search.

Recently, the news portal Cointelegraph reported an endorsement in BlackRock's favor. However, this report turned out to be false. The U.S. Securities and Exchange Commission (SEC) is still studying the application. A decision is expected in mid-January 2024. The crypto market has been waiting for years for the approval of a Bitcoin Spot ETF in the U.S.. The industry is hoping for a huge influx of liquidity from the traditional financial sector - and thus significantly higher prices for Bitcoin and other cryptocurrencies.