BlackRock Adds Goldman Sachs Among New APs For Spot Bitcoin ETF

Investment giant BlackRock Inc. BLK has broadened the network of Authorized Participants (APs) for IBIT IBIT, its spot Bitcoin exchange-traded fund.

What Happened: Launched on Jan. 11, 2024, IBIT offers investors an avenue to gain Bitcoin exposure indirectly, enhancing the accessibility of digital asset investments.

The firm’s latest prospectus reveals the addition of five esteemed financial entities to its roster of APs, elevating the total to nine.

The newly included Authorized Participants are ABN AMRO Clearing USA LLC, Citadel Securities LLC, Citigroup Global Markets, Inc. C, Goldman Sachs & Co. LLC GS, and UBS Securities LLC. UBS, according to an amendment to its registration form.

This expansion is anticipated to bolster IBIT’s liquidity and investor reach significantly.

Authorized Participants are integral to the ETF ecosystem, ensuring the seamless creation and redemption of fund shares by managing cash transactions with the Trust Administrator.

The initial list of APs comprised Jane Street Capital, LLC, JP Morgan Securities LLC, Macquarie Capital (USA) Inc., and Virtu Americas LLC, with the prospectus noting the potential for further additions at BlackRock’s discretion.

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This strategic enlargement highlights the escalating integration of Bitcoin BTC/USD into mainstream finance, underscored by the engagement of heavyweight institutions like Goldman Sachs and Citigroup with the IBIT fund.

Such movements reflect a broader trend towards embracing digital assets within regulated investment frameworks.

Both IBIT and Fidelity's Wise Origin Bitcoin Fund FBTC have demonstrated exceptional performance since their inception, outpacing 3,122 other funds with a record 49 consecutive days of net inflows, an achievement matched by only a select few ETFs historically.

This investor enthusiasm persists despite the volatile nature of Bitcoin’s price, with IBIT capturing more than half of BlackRock’s net flows for the year, significantly outperforming its portfolio of 420 ETFs.

Similarly, FBTC has become a cornerstone for Fidelity, constituting 70% of its total inflows and attracting five times the investment volume of its other ETF offerings.

The remarkable success of these Bitcoin ETFs not only signifies the asset class’s growing acceptance but also underscores the market’s appetite for regulated digital asset investment options.

What’s Next: This evolving landscape is expected to feature prominently in discussions at Benzinga’s upcoming Future of Digital Assets conference on Nov. 19, where the proliferation of Bitcoin ETFs and their implications for investor strategy and market dynamics will take center stage.

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