Goldman Sachs and Other Financial Institutions Become Authorized Participants in BlackRock’s Bitcoin ETF
Goldman Sachs and Citadel are among the new authorized participants for BlackRock’s iShares Bitcoin Trust (IBIT), according to a regulatory filing published on Thursday.
The entry of these traditional financial titans into the Bitcoin Spot ETF arena marks a significant milestone following the successful launches of such products.
The Giants of TradFi Become Authorized Participants in Bitcoin ETFs
In addition to Goldman Sachs, BlackRock, the world’s largest asset manager, has also named UBS, JPMorgan, Citigroup, Citadel, and ABN AMRO as authorized participants, according to information disclosed by Bloomberg.
BlackRock stated in both filings that additional authorized participants may be added at any time.
These specialized entities, often large financial institutions, play a crucial role in the creation and redemption of ETF shares. This process is essential for ensuring liquidity and pricing accuracy of ETF shares in the market.
The Growing Importance of Bitcoin Spot ETFs
Analysis from Eric Balchunas of Bloomberg Intelligence highlights that these major firms are now seeking to be part of the action, even if it means being publicly associated with this sector.
The launch of BlackRock’s IBIT, along with nine similar competing funds on January 11, initially included four authorized participants according to a January 9 filing: Jane Street Capital, JPMorgan Securities, Macquarie Capital, and UBS Securities.
Significant Net Inflows for BlackRock’s IBIT
Since its introduction to the market, BlackRock’s Bitcoin Spot ETF, IBIT, has recorded over $14 billion in net inflows, nearly double the closest fund in this category, the Fidelity Wise Origin Bitcoin Fund (FBTC). These results demonstrate the growing interest and confidence of investors in Bitcoin-based financial products, reflecting wider acceptance of cryptocurrencies in the traditional financial sector.
