Major Wall Street Companies Added to BlackRock's Bitcoin ETF Prospectus

Apr 6, 2024

Companies like ABN AMRO Clearing, Citadel Securities, Citigroup Global Markets, Goldman Sachs, and UBS Securities were included as additional permitted participants in BlackRock's Bitcoin exchange-traded fund (ETF) prospectus.
An amendment to BlackRock's S-1 registration statement with the U.S Securities and Exchange Commission (SEC) confirmed the addition of new members.
The mention of these new companies in the prospectus highlights the increasing interest of major corporations in the cryptocurrency space and willingness to be associated with it.
The idea behind the Bitcoin ETF's cash creation and redemption structure is intended to reduce market manipulation risks in transactions.
Cash transactions for the issuance and redemption of new Bitcoin ETF shares is a departure from the conventional in-kind paradigm, aiming to mitigate intraday price manipulation.
Asset managers like Hashdex initially proposed this method, which has been adopted by major fund managers like BlackRock, ARK Invest, and Grayscale in response to SEC directives.