In Brief
In a recent update, BlackRock has expanded the roster of authorized participants for its spot Bitcoin ETF by inviting well-known firms such as Citadel, Goldman Sachs, UBS, and Citigroup to join.
Asset management firm BlackRock , managing the spot Bitcoin exchange-traded fund known as IBIT, has updated its list of authorized participants (APs). The revised lineup now counts major players like Citadel Securities, Goldman Sachs, UBS Securities, Citigroup Global Markets, and ABN AMRO Clearing USA, bringing the total to nine participants.
Authorized Participants are key players often consisting of major financial institutions that inject capital into the ETF management to receive ETF securities in return. They then market these securities to investors, which is crucial for ensuring that the ETF’s market share prices remain liquid and accurately reflect the underlying asset.
This expansion is designed to bolster the liquidity of IBIT and increase its availability for investors. Furthermore, the inclusion of prestigious firms from traditional finance indicates a growing acceptance of Bitcoin as a legitimate asset class. Citigroup and Goldman Sachs According to a post by Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, shared on the social media platform X, this shift indicates that leading traditional finance houses are showing interest in the spot Bitcoin ETF space and are ready to publicly align themselves with these products.
JUST IN: BlackRock has updated its Bitcoin ETF prospectus, welcoming several new authorized participants including first-timers like Citadel, Goldman Sachs, UBS, and Citigroup. The key takeaway is that major firms are eager to get in on the action and are more than comfortable being associated with it publicly. H/t
Alongside eight other issuers of spot Bitcoin ETFs, BlackRock received the green light from the U.S. Securities and Exchange Commission (SEC) to roll out their investment products, which commenced trading in the U.S. markets in early January.
Initially, there were only four authorized participants, which included Jane Street Capital, Macquarie Capital, JPMorgan Securities, and Virtu Americas. However, the official filing noted that additional authorized participants could be added at the company’s discretion in the future.
Initially, BlackRock’s iShares product Since its inception, the IBIT product has seen a staggering $14.4 billion in net inflows. Just yesterday, it recorded a remarkable net inflow of about $144 million, marking the highest figure for a single day across other issuers.
Currently, the trading price is slightly under the $68,000 mark, sitting at $67,929. This reflects a modest gain of over 0.5% in the past 24 hours, according to data from CoinMarketCap at the time of writing.
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In line with the Trust Project guidelines Alisa, a passionate journalist at Cryptocurrencylistings, has a specialized focus on cryptocurrency, zero-knowledge proofs, investments, and the expansive world of Web3. With an eye for emerging trends and technologies, she provides in-depth coverage that informs and engages readers in the dynamic domain of digital finance.
