BlackRock adds 5 new APs to spot Bitcoin ETF including Goldman Sachs, Citadel, Citigroup

BlackRock, the world’s largest asset manager, has today updated the list of Authorized Participants (APs) for its spot Bitcoin exchange-traded fund (ETF), IBIT. The ETF, which has been live since January 10, 2024, allows investors to gain exposure to Bitcoin without directly holding the digital assets.

According to the latest prospectus, BlackRock has added five new Authorized Participants to the list, 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.

Authorized Participants play a crucial role in the creation and redemption of ETF shares, facilitating the process by transferring cash to and from the Trust Administrator through one or more accounts. The expansion of the AP list is expected to enhance the liquidity and accessibility of IBIT for investors.

The existing Authorized Participants, as listed in the previous prospectus, included Jane Street Capital, LLC, JP Morgan Securities LLC, Macquarie Capital (USA) Inc., and Virtu Americas LLC. The prospectus also stated that additional Authorized Participants may be added at any time, subject to the discretion of the Sponsor.

The inclusion of prominent financial institutions such as Goldman Sachs and Citigroup as Authorized Participants for IBIT demonstrates the growing mainstream acceptance of Bitcoin and the increasing demand for regulated investment vehicles that provide exposure to digital assets.

The additions come amidst a stellar performance by both IBIT and Fidelity’s Wise Origin Bitcoin Fund (FBTC) since their launch. According to Bloomberg data, these two spot Bitcoin ETFs have outperformed 3,122 other funds by recording net inflows for 49 consecutive days, a feat achieved by only 30 other ETFs in history.

The strong investor demand for IBIT and FBTC is evident from the fact that they have continued to attract inflows even on days when the price of Bitcoin has declined. IBIT alone accounts for over half of BlackRock’s net flows year-to-date, surpassing inflows of any of their other 420 ETFs by a factor of two. Similarly, FBTC has been responsible for 70% of Fidelity’s total inflows, attracting five times more investment than any other Fidelity ETF. The impressive performance of these Bitcoin ETFs emphasizes the growing mainstream acceptance of cryptocurrencies as a legitimate asset class and highlights the increasing demand for regulated investment vehicles that provide exposure to digital assets.

As the spot Bitcoin ETFs continues to gain traction among investors, the expansion of the Authorized Participant list is a positive development that could further contribute to the growth and stability of the fund.

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