BlackRock, the asset management firm that operates the IBIT Bitcoin ETF, has expanded its list of authorized participants for the ETF. The updated list now includes companies like Citadel Securities, Goldman Sachs, UBS Securities, Citigroup Global Markets, and ABN AMRO Clearing USA, totaling nine APs. This move is aimed at improving liquidity and the accessibility of the ETF.

Expanding Authorized Participants to Enhance Liquidity and Accessibility for IBIT

Authorized Participants are key players in ETF operations, typically large financial institutions that provide cash to the ETF management company in exchange for ETF securities, which are then sold to investors. This process is essential for maintaining liquidity and accuracy of ETF share prices in the market.

The addition of new Authorized Participants for IBIT, BlackRock's Bitcoin ETF, is expected to enhance liquidity and accessibility for investors. Major financial institutions like Citigroup and Goldman Sachs joining the list indicates the growing acceptance of Bitcoin as a mainstream asset.

According to Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, this development suggests a rising interest from traditional finance companies in participating in spot Bitcoin ETFs and being associated with them publicly.

BlackRock’s Spot Bitcoin ETF and Market Performance

BlackRock and nine other issuers received approval from the United States Securities and Exchange Commission (SEC) to launch spot Bitcoin ETFs. These products started trading on US exchanges in early January.

Initially, BlackRock's iShares product had four authorized participants, including Jane Street Capital, Macquarie Capital, JPMorgan Securities, and Virtu Americas. However, the company's official filing stated that more authorized participants could be added at their discretion.

Since its launch, the IBIT investment product has attracted over $14.4 billion in net inflows. Yesterday, it saw a net inflow of around $144 million, the highest single-day inflow among other issuers.

The current trading price of Bitcoin is just below $68,000, specifically at $67,929, representing a slight increase of more than 0.5% in a 24-hour period, according to data from CoinMarketCap at the time of writing.

Important: Please note that this article provides information and should not be considered as legal, tax, investment, financial, or any other form of advice.