BlackRock is taking action to expand market participation and liquidity by increasing the authorized participants (AP) for its Bitcoin spot ETF – IBIT. Since its launch on January 10, 2024, the ETF has consistently attracted the largest inflows among all related ETFs.
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Addition of Several Financial Giants
Benefits of Expanding Authorized Participants (AP)?
IBIT Continues to Lead
Bitcoin ETF Brings in Substantial Funds for BlackRock and Fidelity
Impact on Future Growth
Updated Prospectus Reveals
BlackRock has added five renowned financial institutions to its AP list, increasing the original four to a total of nine. The newly added institutions include ABN AMRO Clearing USA LLC, Citadel Securities LLC, Citigroup Global Markets, Inc., Goldman Sachs & Co. LLC, and UBS Securities LLC. These additional institutions will optimize the trust management services for creating and redeeming shares in the ETF.
Authorized participants play a crucial role in maintaining the efficiency of ETF operations. They facilitate seamless fund transfers between funds and trusts, ensuring the efficient operation of ETFs and attractiveness to investors. The expansion of the AP scope is expected to significantly enhance the liquidity of IBIT and make it more accessible to a diverse group of investors.
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Since their launch, BlackRock’s IBIT and Fidelity’s FBTC have outperformed other funds. These ETFs not only outperformed other funds but also set a rare record of 49 consecutive days of inflows in ETF history.
The continuous inflows into IBIT and FBTC, even during periods of Bitcoin price decline, highlight investors’ unwavering confidence in these products.
IBIT from BlackRock has contributed over half of the company’s net inflows this year, which is twice as much as any of its other 420 ETF products. Similarly, FBTC from Fidelity has attracted 70% of its total inflows and has attracted capital five times more than any other Fidelity ETF.
The inclusion of these heavyweight financial players as authorized participants in the IBIT ETF not only underscores the increasing mainstream acceptance of Bitcoin but also reflects the growing demand for regulated investment channels to enter 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 portfolio components.
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