What BlackRock's Bitcoin ETF Means for Wall Street ?

With a change to the structure of its spot ETF application, BlackRock will open the door to bitcoin for Wall Street banks that cannot hold crypto directly by allowing the purchase of bitcoin not only with crypto assets but also with fiat money.
BlackRock recently enabled authorized participants, a vital part of the ETF ecosystem, to create new fund shares in cash, rather than just cryptocurrency.
Since highly regulated US banks cannot hold bitcoin, this arrangement will allow firms with some of the world's largest balance sheets, such as JPMorgan or Goldman Sachs, to act as authorized participants in BlackRock's ETF. (Whether they want to or not is another matter.)
The cash used by authorized participants in this process could then be converted into bitcoin by an intermediary and stored by the ETF's custodian, according to a November 28 meeting memo involving the US Securities and Exchange Commission (SEC), BlackRock and Nasdaq.