BlackRock’s Bitcoin ETF Attracts Major Players as Authorized Participants
BlackRock, a significant player in the financial industry, has made updates to its Bitcoin ETF prospectus, welcoming several notable names as authorized participants, according to insights from Eric Balchunas, an expert ETF analyst at Bloomberg.
Among these newcomers are Citadel, Goldman Sachs, UBS, and Citigroup, a major player in the investment banking sector.
Balchunas suggests that these firms may have initially hesitated to associate themselves with the product before its launch. However, following the remarkable success of BlackRock’s Bitcoin ETF, which achieved $10 billion in assets under management within just seven weeks—a record-setting feat—their comfort level with being identified as authorized participants has seemingly increased.
Before receiving approval from the Securities and Exchange Commission in early January, BlackRock had already disclosed that Jane Street Capital, a global proprietary trading firm, and JP Morgan, a banking giant, would be among its authorized participants.
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JP Morgan’s inclusion came as a surprise to some, given CEO Jamie Dimon’s past skepticism towards Bitcoin, having even advocated for a cryptocurrency ban during a congressional hearing in December.
Authorized participants play a crucial role in the ETF ecosystem, facilitating the creation and redemption of shares for the issuer, thereby enabling the exchange of these shares for cash or other securities. Balchunas suggests that the addition of Citadel and other significant firms to the list reflects a growing interest from major players in the Bitcoin market, signaling a greater willingness to publicly embrace and associate with the cryptocurrency.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
