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Wintermute Is Coming for Wall Street's Crypto ETF Middlemen — Here's What That Means for the Market

(56 days ago) · 1 source · Summarized by CryptoBipto

Wintermute, one of the largest crypto-native market makers, is positioning itself to challenge traditional Wall Street firms that currently serve as authorized participants and market makers for crypto ETFs. The move signals growing competition between crypto-native firms and legacy finance players for control over the lucrative ETF infrastructure. This could reshape how crypto ETFs are priced, traded, and managed.

WHY IT MATTERS

Think of crypto ETFs like a store that sells gold coins. The 'authorized participants' are the wholesalers who make sure the store always has the right amount of gold at the right price. Right now, big Wall Street banks are the only wholesalers allowed to do this job for crypto ETFs. Wintermute — a company that was born in the crypto world — wants to become one of those wholesalers too. If they succeed, it could mean better prices for everyday investors who buy crypto ETFs, because more competition among wholesalers usually means lower costs. It's also a sign that crypto-native companies are growing up and competing directly with traditional finance on its own turf.

Since the launch of spot Bitcoin and Ethereum ETFs, traditional Wall Street firms like Jane Street and Virtu Financial have dominated the authorized participant (AP) and market-making roles that keep these products functioning smoothly.

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