Major Issuers Position Themselves for Bitcoin ETF Launch as SEC Nears Approval

Fidelity and Galaxy Digital are positioning themselves to gain early traction in the Bitcoin exchange-traded fund (ETF) market by naming Wall Street partners to help operate their funds and setting competitive expense ratios. The ETFs are expected to attract significant assets from investors eager to gain regulated crypto exposure due to their lower fees and robust market-making relationships. Major market makers such as Jane Street Capital, JPMorgan, Cantor Fitzgerald, and Virtu have been named as authorized participants that will handle share creation/redemption for their respective Bitcoin ETFs. The SEC is expected to approve the first wave of Bitcoin ETFs in January 2022, which could significantly expand access to crypto exposure for a broader audience of new investors.