BlackRock has significantly expanded the list of Authorized Participants (APs) for its spot Bitcoin ETF, iShares Bitcoin Trust (IBIT). Goldman Sachs, Citadel, Citigroup, UBS Securities, and ABN AMRO Clearing join existing APs JP Morgan, Jane Street Capital, Virtu Americas, and Macquarie. The addition of these Wall Street giants indicates increased mainstream adoption of Bitcoin and the growing demand for spot Bitcoin ETFs.
BlackRock Expands Authorized Participants for iShares Bitcoin Trust ETF, Signaling Institutional Embrace of Spot Bitcoin
BlackRock, the world's largest asset manager, has updated the list of Authorized Participants (APs) for its iShares Bitcoin Trust (IBIT) ETF, adding five new Wall Street giants: Goldman Sachs, Citadel, Citigroup, UBS Securities, and ABN AMRO Clearing. This expansion brings the total number of APs to nine, a significant increase from the initial four when IBIT was launched.
The move comes amid growing traction for spot Bitcoin ETFs, which provide investors with exposure to the underlying asset, Bitcoin, rather than futures contracts. The approval of several spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) in January has been a major catalyst for increased interest in the asset class.
According to Bloomberg ETF analyst Eric Balchunas, the addition of Goldman Sachs, Citigroup, and other APs indicates that "big time firms now want piece of action." He notes that these companies were not previously named in any Bitcoin ETF filings, suggesting that they are now more comfortable being publicly associated with the nascent digital asset.
The expansion of APs for IBIT is a reflection of the growing institutional interest in Bitcoin and the increasing acceptance of cryptocurrency as a legitimate investment asset. Balchunas attributes the recent surge in Bitcoin's price to the approval of spot Bitcoin ETFs, which have attracted substantial inflows from investors seeking exposure to the world's largest cryptocurrency by market capitalization.
The addition of these Wall Street giants as APs is a further testament to the growing institutional adoption of cryptocurrencies. In March, Bitcoin ETFs traded a staggering $111 billion, nearly three times the combined trades recorded in February and January. This surge in demand has prompted BlackRock and other firms to file proposals for spot Ethereum ETFs, indicating a broader shift towards digital assets within the traditional investment landscape.
The regulatory approval of spot Bitcoin ETFs and the increasing involvement of institutional players mark a significant milestone in the mainstream adoption of cryptocurrency. As the market continues to mature, spot Bitcoin ETFs are expected to play an increasingly important role in providing investors with access to this new asset class and shaping the future of the digital asset ecosystem.
