BlackRock, the asset management firm behind the spot Bitcoin exchange-traded fund (ETF) IBIT, has updated its list of authorized participants (APs).
The new list includes additional companies like Citadel Securities, Goldman Sachs, UBS Securities, Citigroup Global Markets, and ABN AMRO Clearing USA, bringing the total number of APs to nine. This expansion aims to enhance liquidity and accessibility for the ETF.
Expanding Authorized Participants to Boost Liquidity and Accessibility for IBIT
Authorized Participants, typically large financial institutions, play a crucial role in ETF operations. They provide cash to the ETF management company in exchange for ETF securities, which they then sell to investors. This process is vital for maintaining liquidity and accuracy of ETF share prices in the market.
The recent expansion of Authorized Participants for IBIT, BlackRock’s spot Bitcoin ETF, is expected to enhance its liquidity and accessibility for investors. With major institutions like Citigroup and Goldman Sachs joining, it signals Bitcoin’s growing acceptance as a mainstream asset.
According to Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, this development suggests that large traditional finance companies are now showing interest in participating in spot Bitcoin ETFs and are willing to publicly associate with them.
JUST IN: BlackRock updated its bitcoin ETF prospectus w/ many new Authorized Participants incl first-timers Citadel, Goldman Sachs, UBS, Citigroup. Takeaway: big time firms now want piece of action and/or are now OK being publicly associated w this. H/t @akibablade @CryptoSlate… pic.twitter.com/z5Ntb43VhO
— Eric Balchunas (@EricBalchunas) April 5, 2024
BlackRock’s Spot Bitcoin ETF and Market Performance
BlackRock, along with nine other issuers, received approval from the United States Securities and Exchange Commission (SEC) to launch spot Bitcoin ETFs. These products commenced trading on exchanges in the United States in early January.
Initially, BlackRock’s iShares product had only four authorized participants, including Jane Street Capital, Macquarie Capital, JPMorgan Securities, and Virtu Americas. However, the official filing indicated that more authorized participants could be added at any time at the company’s discretion.
Since its launch, the IBIT investment product has attracted over $14.4 billion in net inflows. Yesterday, it witnessed a net inflow of approximately $144 million, marking the highest single-day net inflow among other issuers.
Bitcoin’s current trading price is slightly below the $68,000 threshold, standing at $67,929. This reflects a modest increase of over 0.5% within the 24-hour period, based on data sourced from CoinMarketCap at the time of writing.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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