Blackrock Lists Goldman Sachs As An AP For Its Bitcoin ETF
Goldman Sachs and other renowned financial entities have been named authorized participants (AP) for BlackRock’s iShares Bitcoin Trust (IBIT). According to a new SEC filing, Goldman Sachs joins Citigroup Global Markets, UBS Securities, ABN AMRO Clearing USA, and Citadel Securities as APs for IBIT.
Authorized participants play a crucial role in creating and redeeming shares within an ETF, ensuring liquidity and price accuracy in the market. Initially launched with four APs, including JPMorgan Securities and Jane Street Capital, BlackRock’s move to include Goldman Sachs and other prominent players underscores traditional asset managers’ growing interest and confidence in digital assets.
BlackRock’s Bitcoin ETF Extends Dominance
Since its launch nearly three months ago, IBIT has experienced consistent net inflows totaling over $14 billion, making it one of the most successful funds in its category. The influx of funds into IBIT highlights the increasing demand for exposure to Bitcoin among institutional investors.
The involvement of major financial institutions like Goldman Sachs lends credibility to BlackRock’s Bitcoin ETF. This development comes at a time when regulatory clarity and institutional participation are reshaping the landscape of digital assets.
Eric Balchunas, a Bloomberg Intelligence analyst, noted that including such esteemed firms as APs signifies their willingness to engage publicly with the burgeoning ETF market. Meanwhile, BlackRock has indicated that additional APs would be added when necessary to expand the broader accessibility of its IBIT further.
Crypto ETPs’ AUM Surge
According to the latest data from Digital Asset Research (DAR), March saw a significant surge in the Assets Under Management (AUM) of top Crypto ETPs. The ProShares Bitcoin Strategy ETF (BITO) is leading the pack, listed on the United States’ NYSE Arca, with nearly $2.9 billion in AUM as of April 1, 2024.
Despite recent market fluctuations, BITO AUM’s 9.68% Month-over-Month (MoM) increase reflects growing investor confidence in Bitcoin. Next is CoinShares Physical Bitcoin ETP, listed on the SIX exchange, with an AUM of about $950 billion and a MoM change of over 10.60% – an attractive option for many investors.
Furthermore, the ETC Group Physical Bitcoin (BTCE), listed on Germany’s XETRA, recorded an 8.9% MoM increase in AUM, reaching approximately $1.6 billion. This surge reflects investors’ continued interest in profiting from BTC through physically backed ETPs, which offer greater transparency and security.
The VanEck Bitcoin ETN (VBTC), listed on Deutsche Boerse AG, also experienced a 12.24% MoM growth in AUM, reaching over $475 million. VBTC’s performance highlights the significance of exchange-traded notes (ETNs) as alternative investment vehicles for gaining exposure to BTC.
The MoM growth for Brazil’s QR Capital Bitcoin ETF (QBTC11) was 21.30%, reflecting the region’s appetite for crypto investment opportunities. The Purpose Bitcoin ETF (BTCC), listed on the Toronto Stock Exchange (TSX), rounds out the top performers.
BTCC’s AUM recorded a 5.26% MoM uptick to reach around $2 billion, underscoring North America’s sustained demand for BTC ETPs.
Service Providers And Market Growth
DAR’s data also indicate that service providers play crucial roles in the Crypto ETP ecosystem. JTC Fund Solutions (Jersey) Limited is the top fund administrator, overseeing 28 products.
Coinbase Custody is the preferred custodian, safeguarding 62 products, while Flow Traders is the top market maker, covering 95 products. Despite occasional price fluctuations, institutional adoption and mainstream acceptance of cryptocurrencies continue to gather momentum, bolstering the market’s overall resilience.