BlackRock Adds Wall Street Heavyweights to Bitcoin ETF Authorized Participants Panel

BlackRock's spot Bitcoin ETF (IBIT) has added major U.S. banks as authorized participants, including Goldman Sachs, UBS, and Citigroup. These additions follow the ETF's successful launch in January, which has seen it absorb over $12 billion in net flows and hold over $16 billion in assets. The move signals growing institutional acceptance of crypto and could further fuel the growth of Bitcoin ETFs.

BlackRock Expands Authorized Participants for its Spot Bitcoin ETF, Adding Prominent Wall Street Banks

New York, April 8, 2024 - BlackRock, the world's largest asset manager, has added several major U.S. banks as authorized participants for its iShares Bitcoin Trust (IBIT), a spot Bitcoin exchange-traded fund (ETF) that has been gaining significant traction in the financial markets.

In post-effective amendments filed with the U.S. Securities and Exchange Commission (SEC) on Friday, BlackRock named Citadel, Goldman Sachs, UBS, and Citigroup as authorized participants for its Bitcoin ETF, which launched in January 2024. Authorized participants play a crucial role in the ETF ecosystem, being responsible for creating and redeeming ETF shares to keep the ETF's price closely aligned with the underlying asset, in this case, Bitcoin (BTC).

The addition of these prominent Wall Street banks to BlackRock's ETF partnership network represents a significant development in the cryptocurrency industry. It demonstrates the growing institutional acceptance and recognition of Bitcoin as a legitimate investment asset.

"These new authorized participants provide additional liquidity and support for the iShares Bitcoin Trust, further enhancing its position as a leading investment vehicle for accessing Bitcoin," a BlackRock spokesperson told Decrypt. "We believe this will further support the growth and maturity of the Bitcoin market."

The four new banks join an already established group of authorized participants for the BlackRock Bitcoin ETF, including ABN AMRO, JP Morgan, Jane Street, Macquarie Capital, and Virtu. Notably, Goldman Sachs has previously expressed skepticism towards cryptocurrencies, with its executives publicly dismissing them as "not an investment asset class." However, the bank's recent move to become an authorized participant for BlackRock's Bitcoin ETF suggests a shift in its stance, likely driven by growing client demand for exposure to digital assets.

Analysts believe that the addition of these major banks as authorized participants is a reflection of the increasing popularity and acceptance of Bitcoin ETFs among institutional investors.

"The participation of these large financial institutions signals a growing appetite for Bitcoin among traditional investors," said Eric Balchunas, ETF analyst at Bloomberg. "It's a clear indication that Bitcoin is gaining wider acceptance as a legitimate investment asset."

Since its launch in January 2024, Bitcoin ETFs have attracted substantial inflows, absorbing over $12 billion in net flows. BlackRock's Bitcoin ETF, in particular, has emerged as a dominant player in the space, amassing over $16 billion in assets under management.

The expanding authorized participant network for the BlackRock Bitcoin ETF is expected to further support its growth and liquidity, making it an increasingly attractive option for investors seeking exposure to the cryptocurrency market.