Big trading firms are in talks to provide liquidity for BlackRock’s proposed spot Bitcoin exchange-traded fund if it obtains regulatory approval. Will this pave the way for a new wave of adoption of Bitcoin in traditional financial circles? 

A Testament to Bitcoin’s Resilience

The potential collaboration between significant trading firms and BlackRock for the proposed spot bitcoin exchange-traded fund (ETF) signifies a break-even point in the crypto market. Jane Street, Virtu Financial, Jump Trading, and Hudson River Trading are reportedly engaged in discussions with BlackRock, aiming to play a crucial role as market makers, as reported by Bloomberg. Their involvement is integral for ensuring liquidity in the ETF, a fundamental aspect of its functionality. Market makers act as intermediaries, connecting buyers and sellers and facilitating the creation and redemption of ETF shares. 

Notably, this came during BlackRock’s eagerly awaited spot Bitcoin ETF. While BlackRock and Jane Street declined to comment on the matter, there has been no immediate response from Virtu Financial, Jump Trading, and Hudson River Trading. 

Earlier this year, both Virtu and Jane Street expressed their support for a separate proposal for a spot bitcoin ETF. They highlighted the resilience of the Bitcoin ecosystem, suggesting that it could adequately support a US-listed ETP (exchange-traded product). Additionally, they emphasized the potential benefits to US investors if the SEC approved Grayscale’s proposal for a spot bitcoin ETF.

Expect an Early Bitcoin Rally

The recent surge in bitcoin’s value has been partly attributed to the speculation surrounding BlackRock’s forthcoming ETF. This heightened interest underscores the growing significance of cryptocurrency in the broader financial landscape.

However, it’s important to note that, as of now, the SEC has not yet approved a spot bitcoin ETF, leaving the industry and investors eagerly awaiting further developments. BlackRock CEO Larry Fink cites the recent bitcoin rally after false ETF approval news as a sign of high crypto interest. SEC has not yet approved a spot bitcoin ETF. Currently, Bitcoin price is rising after strong buying near $33,900. BTC’s price is approaching $35K and trying to break out. Anything is possible at this juncture.