Jump Trading Withdraws from Emerging Bitcoin ETF Market After Crypto Bets Sour
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Jump Trading, a major crypto trading firm, declined to participate in the emerging Bitcoin ETF industry as an authorized participant. This reflects a broader retreat from crypto after failed investments.
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The SEC is expected to approve several Bitcoin ETFs soon. Firms like BlackRock and Fidelity will be issuers, while others like Coinbase and Virtu will play key roles.
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Authorized participants help create/redeem ETF shares. Most lack crypto experience, so a cash model was pushed where issuers handle buying/selling Bitcoin.
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Jump had been very active in crypto, investing millions in Terra before its collapse. It cut staff after crypto bets soured.
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Jump's crypto woes continue, as Terra fraud charges will go to trial. Jump allegedly helped artificially maintain Terra's failed stablecoin.