In a move to expand market participation and liquidity, BlackRock will add authorized participants (APs) to its Bitcoin Spot ETF – IBIT, which has been the first authorized participant (AP) for all related ETFs since its launch on January 10, 2024. Among them, the one with the largest inflow of funds.
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ToggleAdded new financial giants. Multiple financial giants.
The updated prospectus shows that BlackRock has added five well-known financial institutions to its AP list, increasing the original four to nine. New entrants include ABN AMRO Clearing USA LLC, Citadel Securities LLC, Global Markets, Inc., Goldman Sachs & Co. LLC and UBS Securities LLC. These new institutions will provide trust management services to optimize the ETF's share creation and redemption process.
What are the benefits of expanding Authorized Participants (APs)?
Authorized Participants play a key role in maintaining the efficiency of ETF operations. They facilitate the seamless transfer of funds between funds and trusts, ensuring that ETFs operate efficiently and remain attractive to investors. The expanded scope of AP is expected to significantly increase IBIT’s liquidity and make it more accessible to a diverse investor base.
IBIT continues to lead
BlackRock's IBIT and Fidelity's FBTC have performed well since their launch, significantly outperforming other funds. Not only did these ETFs outperform other funds, they also set record inflows for 49 consecutive days, a rare achievement in ETF history.
Bitcoin ETF brings big money to BlackRock and Fidelity
Continued investor inflows into IBIT and FBTC, even during Bitcoin price declines, underscore the strong confidence in these products.
BlackRock's IBIT has contributed to more than half of the company's net inflows this year, twice as much as any of its other 420 ETF offerings. Likewise, Fidelity's FBTC attracted 70% of its total inflows, attracting five times more capital than any other Fidelity ETF.
Impact on future growth
The inclusion of these heavyweight financial players as authorized participants in the IBIT ETF not only highlights Bitcoin’s growing mainstream acceptance, but also reflects increased demand for regulated investment channels into digital assets. This policy not only enhances the stability and growth prospects of the IBIT ETF, but also solidifies the compliant status of cryptocurrencies as an investment portfolio component.
