Media: Jump Trading poised to become market maker for BlackRock’s Bitcoin ETF

Jane Street, Jump Trading, Virtu and Hudson River Trading could act as market makers for BlackRock’s spot Bitcoin-ETF if approved. According to informed sources, CoinDesk reports.

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According to crypto media, representatives of the firms have held talks with BlackRock regarding their participation in supporting the product.

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Market makers are responsible for creating and redeeming new ETF shares, smoothing price deviations from NAV. The need for such participation is demonstrated by a deep discount to GBTC from Grayscale, the journalists noted.

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The listing of the ETF would allow US-based Jane Street and Jump Trading to effectively return to their home market. In May, media reported their decision to stop trading digital assets amid regulatory uncertainty.

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Earlier, JPMorgan experts concluded that the new crypto investment product could be approved within months. Specialists noted the absence of an appeal by the SEC on a court decision in the Grayscale case. The court ordered the agency not to impede the transformation of the bitcoin trust into an ETF.

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In July, the SEC began considering requests for launching spot ETFs based on digital gold from BlackRock, VanEck, Invesco, Fidelity Investments and WisdomTree. Later, Franklin Templeton joined them.

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In Michael Lewis’s Going Infinite, Jump Trading is said to have lost $206 million in the collapse of the FTX crypto exchange.