BlackRock Adds Goldman Sachs and Citigroup as Authorized Participants for Bitcoin ETF

BlackRock, the global asset manager overseeing about $9 trillion of assets, has broadened the horizons of its spot Bitcoin ETF by adding five new Authorized Participants (APs) to its roster. 

Initially, BlackRock had designated JP Morgan, Jane Street Capital, Virtu Americas, and Macquarie as its authorized participants for the Bitcoin ETF. 

However, the latest update to the ETF prospectus reveals the inclusion of prominent financial institutions such as Goldman Sachs, Citigroup, Citadel, UBS Securities, and ABN AMRO Clearing.

This development comes amidst a surge in investor interest in Bitcoin (BTC) and a growing demand for regulated investment avenues in the cryptocurrency space.

Authorized Participants play a crucial role in the creation and redemption of ETF shares, facilitating the process by transferring cash to and from the Trust Administrator.  This move is expected to make IBIT more appealing and readily available to a wider range of investors seeking exposure to Bitcoin.

“Up until now Citi, GS, UBS and Citadel were not named in any of these ETF filings. So they either new OR they were ashamed before to be ID-ed but are now cool. Either way, likely a result of the ETFs’ mega-flows/success,” ETF analyst Eric Balchunas said in a post on X.

The inclusion of renowned financial institutions like Goldman Sachs and Citigroup as APs for BlackRock's IBIT highlights the increasing mainstream acceptance of Bitcoin. It reflects a shift in perception among traditional financial players towards embracing digital assets as part of their investment strategies. 

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Performance Metrics

Since their inception, both IBIT and Fidelity's Wise Origin Bitcoin Fund (FBTC) have demonstrated remarkable performance. 

According to Bloomberg data, these two spot Bitcoin ETFs have surpassed thousands of other funds by recording net inflows for 49 consecutive days, a feat achieved by only a handful of ETFs in history. IBIT alone has garnered over $14 billion in net inflows, solidifying its position as a leading player in the Bitcoin ETF market.