BlackRock adds Goldman Sachs and 4 new partners to Bitcoin spot ETF
BlackRock's IBIT Bitcoin spot ETF also adds ABN AMRO Clearing, UBS Securities, Citadel Securities, and Citigroup to the list of new partners.
BlackRock adds Goldman Sachs and 4 new AP partners to Bitcoin spot ETF
According to Bloomberg senior analyst Eric Balchunas, the world's largest asset management group BlackRock has updated the list of Authorized Providers (AP) for its IBIT Bitcoin spot ETF.
Documents filed with the US Securities Commission (SEC) by BlackRock reveal five new AP names, including ABN AMRO Clearing USA LLC, Citadel Securities LLC, Citigroup Global Markets, Inc., Goldman Sachs & Co. LLC and UBS Securities LLC.
The document, when adopted, will increase BlackRock's total number of authorized members from four to nine, with Jane Street Capital LLC, JP Morgan Securities LLC, Macquarie Capital (USA) Inc., and Virtu Americas LLC already named in the previous list.
Authorized Providers (APs) play a key role in the creation and redemption of ETF shares, facilitating this process by transferring funds between Trust Managers through one or more account.
The announcement to expand the AP list is expected to improve IBIT's liquidity and accessibility to investors. The document also states that additional APs may be added at any time, at the discretion of the Sponsor.
In addition, Mr. Eric Balchunas said that this is the first time the world's top 5 financial management organizations "appear" on the AP list of an ETF, showing the growing widespread acceptance of Bitcoin. and growing demand for managed investment instruments that provide exposure to digital assets.
These additions come in the context that both IBIT and Fidelity's FBTC fund recorded a 3-fold increase in Bitcoin ETF trading volume in March 2024.
Data from Farside Investors shows that BlackRock's IBIT fund attracted $144 million in inflows on April 4, 2024, followed by FBTC's $106 million. Of the 11 ETFs, these are the only two to consistently show net inflows into their Bitcoin ETF products for 49 consecutive days, a feat achieved by only 30 other ETFs in history.
