BlackRock has recently updated its BlackRock Portfolio, adding new Authorized Participants (APs) to its list in response to the growing popularity of spot Bitcoin ETFs. This move comes as Goldman Sachs, Citadel, Citigroup, UBS, and ABN AMRO have joined forces to become APs for BlackRock’s iShares Bitcoin Trust ETF (IBIT).
With this update, BlackRock now has a total of nine APs, compared to the previous four, for its IBIT which holds billions of dollars’ worth of Bitcoin. This expansion of APs from Wall Street giants indicates their increasing interest in gaining exposure to BTC, the world’s largest cryptocurrency.
Initially, BlackRock had named JP Morgan, Jane Street Capital, Virtu Americas, and Macquarie as its authorized participants. However, with the expected increase in inflows and demand for BTC exposure, the addition of more prominent firms like Goldman Sachs and Citigroup is a significant development.
According to Bloomberg ETF Analyst Eric Balchunas, these new APs coming on board represents a “big time” move for these firms, and they are no longer hesitant to be associated publicly with Bitcoin and ETFs. This can be seen as a result of the ETFs’ success and massive inflows in recent months.
The rising demand for BTC and the potential for spot Bitcoin ETFs to be approved by the Securities and Exchange Commission (SEC) have been noted as the driving forces behind the cryptocurrency’s sharp increase in value. In March, Bitcoin ETFs traded for over $111 billion, almost three times the amount traded in February and January combined.
In response to the demand for new investment assets, BlackRock and other companies have filed proposals to create spot crypto assets, including Ethereum ETFs. This further demonstrates the growing popularity and acceptance of cryptocurrencies in the traditional financial sector.
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