BlackRock’s Bitcoin ETF Broadens Reach, Securing 5 New Wall Street Banking Giants As APs

Bitcoin (BTC) has recently become increasingly attractive to asset managers and traditional finance (TradFi) institutions, particularly with Bitcoin ETF products offered by industry leaders such as BlackRock, Grayscale, and Fidelity. Due to its remarkable success, it has attracted a lot of attention.

This success has encouraged more Wall Street banking institutions to eagerly enter the newly authorized ETF market as authorized participants (APs).

Major institutions join BlackRock

As recently revealed NoteBlackRock has expanded the list of authorized participants for the iShares Bitcoin Trust (IBIT) ETF.

BlackRock has added five new participants, including: goldman sachs, Citadel, Citigroup, UBS and clearinghouse ABN AMRO, bringing the total number of authorized participants to nine. The move comes as the fund attracts significant investment from individuals and organizations.

It is worth noting that Jane Street Capital, JPMorgan, Macquarie, and Virtu Americas are already on the list of authorized participants.

Authorized participants will create and redeem transactions exclusively in cash, according to BlackRock’s filing. ETF stocks. They do not directly or indirectly process Bitcoin as part of the creation or redemption process.

Authorized Participants play an important role in the ETF ecosystem. They have agreements with ETF issuers that give them the right to create and redeem ETF shares based on market demand. These participants may act on their own behalf or on behalf of other participants. market participants No compensation will be provided by the ETF issuer.

By dynamically adjusting the number of ETF shares outstanding, Authorized Participants aim to increase efficiency and reduce costs for ETF investors.

Wall Street giants embrace Bitcoin ETF market

The addition of prominent Wall Street institutions such as Goldman Sachs, Citigroup, UBS, and Citadel as authorized participants highlights the growing interest and acceptance of Bitcoin-related financial products.

Bloomberg ETF expert Eric Balchunas suggest These big banks either have a new interest in this area or are now comfortable engaging with it publicly.

Their participation had not previously been explicitly mentioned in the ETF application, Balciunas said. However, the impressive growth and success of these ETFs likely influenced their decision to participate openly.

In terms of market flows, the 10 spot ETFs recently approved by the U.S. Securities and Exchange Commission (SEC) are: It is shown Stable investor interest. On April 4, these ETFs recorded remarkable net inflows of $213 million, marking the third consecutive day of positive inflows.

Spot Bitcoin ETF Market Net Inflows and Net Assets. sauce: Colin Wu of X

However, Grayscale’s GBTC experienced a significant net outflow of $79.3 million for the day.historical net spill The total value of GBTC now stands at $15.31 billion.

Meanwhile, BlackRock’s IBIT ETF emerged as the top performer, posting significant net inflows of approximately $144 million on the same day. This brings IBIT’s total historical net inflows to $14.4 billion.

BTC is trading at $67,700 and has experienced sideways price movement over the past 24 hours. Despite the success of the Bitcoin ETF market, the price has fallen by 2% in the past seven days.

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The 1-D chart shows the lateral price movement of BTC. sauce: BTCUSD on TradingView.com

Featured image from Shutterstock, chart from TradingView.com

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