BlackRock updates Bitcoin ETF, adds 5 Wall Street firms.
Global asset manager BlackRock updated its Bitcoin exchange-traded fund (ETF) prospectus on April 5, adding five big Wall Street firms as new authorized participants.
New members include ABN AMRO Clearing, Citadel Securities, Citigroup Global Markets, Goldman Sachs, and UBS Securities, according to the document amending BlackRock’s S-1 registration statement with the Securities and Exchange Commission.
Among the previously authorized participants in the ETF are JPMorgan Securities, Jane Street Capital, Macquarie Capital, and Virtu Americas.
Authorized participants play a crucial role in the BTC ETF operational mechanism as they can create and redeem shares of the ETF, which involves exchanging ETF shares for a corresponding basket of securities that reflect the ETF’s holdings or exchanging them for cash.
According to Bloomberg analyst Eric Balchunas, the new additions indicate that “big time firms now want piece of action and/or are now OK being publicly associated with this.”
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