BlackRock Expands Bitcoin ETF with Inclusion of Wall Street Giants

By: Eliza Bennet

BlackRock, a leading global asset manager, has updated the list of Authorized Participants (APs) for its Bitcoin exchange-traded fund (ETF), known as IBIT. The inclusion of new APs, including renowned financial institutions such as Goldman Sachs, Citadel Securities LLC, and Citigroup Global Markets is expected to boost the liquidity and accessibility of IBIT for a wider range of investors.

The new additions to the already two-month live ETF increases the number of APs from four to nine. APs play a vital role in the creation and redemption of ETF shares. They facilitate the process of transferring cash to and from the Trust Administrator through a set of accounts, improving the functionality of IBIT in turn.

The decisions to integrate such pivotal mainstream financial entities underline the accelerated acceptance of Bitcoin in mainstream sectors. The need for regulated investment vehicles, providing adequate exposure to digital assets, is on the rise, acknowledged by the prominent role of Bitcoin ETFs. This development comes amidst stellar performances by IBIT and Fidelity’s Wise Origin Bitcoin Fund (FBTC), outperforming over 3,000 other funds.

These ETFs have continued to attract significant inflows, even during dips in Bitcoin's price. For instance, IBIT accounts for over half of BlackRock's net inflows year-to-date, and FBTC is responsible for 70% of Fidelity's total inflows. Such impressive performances underscore the growing acceptance of cryptocurrencies and project the increasing demand for regulated investment vehicles that provide exposure to these digital assets. As the IBIT continues to gain investor attraction, the expansion of Authorised Participants is a compelling development that further contributes to the growth and stability of the fund.