Key Points
- BlackRock updates its Bitcoin ETF prospectus with significant new authorized participants.
- The first-timers include Citadel, Goldman Sachs, UBS, and Citigroup.
According to the latest reports, BlackRock, the world’s largest asset manager, has just updated the list of Authorized Participants (APs) for its spot BTC ETF, IBIT.
Recently, Larry Fink, BlackRock’s CEO, expressed his optimism regarding the long-term viability of Bitcoin, saying that their spot BTC ETF is the fastest-growing in history.
The company’s BTC ETF, IBIT, has been live since January 11, 2024, and it allows investors to gain exposure to Bitcoin without directly holding the digital asset.
The impressive performance of Bitcoin ETFs highlights the increasing demand for regulated investment vehicles that provide exposure to digital assets and emphasizes the growing mainstream acceptance of cryptocurrencies as a legitimate asset class.
BlackRock ads five new APs to its spot BTC ETFs
BlackRock has just added five new Authorized Participants to the list, this way expanding the total number of APs from four to nine.
The new additions include ABN AMRO Clearing USA LLC, Citadel Securities LLC, Citigroup Global Markets, Inc., Goldman Sachs & Co. LLC, and UBS Securities LLC.
Existing participants included Jane Street Capital, LLC, JP Morgan Securities LLC, Macquarie Capital (USA) Inc., and Virtu Americas LLC.
Senior ETF analyst at Bloomberg, Eric Balchunas, also addressed BlackRock’s move on his X account, highlighting that BTC ETFs definitely show a huge success.
Here's current list of ETFs and their APs. Up until now Citi, GS, UBS and Citadel were not named in any of these ETF filings. So they either new OR they were ashamed before to be ID-ed but are now cool. Either way, likely a result of the ETFs' mega-flows/success. pic.twitter.com/TRkpllJ1Js
— Eric Balchunas (@EricBalchunas) April 5, 2024
Authorized Participants are essential in the creation and redemption of ETF shares. They transfer cash to and from the Trust Administrator, using one or more accounts to facilitate the process.
The expansion of the AP list is anticipated to improve the liquidity and accessibility of IBIT for investors.
Including such important names in the present prospectus shows an increasing mainstream acceptance and demand for Bitcoin, at the same time demonstrating the need for regulated investment vehicles that offer crypto exposure.
The approval of spot BTC ETF back in January triggered a surge in price for Bitcoin, which managed to break through new ATHs.
At the moment of writing this article, BTC is trading in the green, and the coin is priced at $67,900, up by more than 0.3% in the past seven days, on CoinMarketcap.
Bitcoin has 14 more days to go until the halving, and the markets experience high volatility ahead of the event.
