Bitcoin ETFs: BlackRock adds Citi, Goldman Sachs and others as Authorized Participants

BlackRock has added four more Wall Street firms as authorized participants (APs) for its spot Bitcoin ETF. With this addition, the asset manager’s Bitcoin-based fund now boasts a total of nine APs.

This announcement follows BlackRock and several other firms submitting amended forms for their Bitcoin ETF applications to the SEC.

Blackrock issues Bitcoin ETFs Update

BlackRock, touted as the world’s largest asset manager, now counts Citi, Citadel, Goldman Sachs, and UBS among its APs for its spot Bitcoin ETF offering.

The information was disclosed through an amendment attached to the ETF’s Form S-1 submitted to the Securities and Exchange Commission (SEC) on April 5,

This announcement follows BlackRock and several other firms submitting amended forms for their Bitcoin ETF applications to the SEC.

On Jan. 8, several key players in the financial industry, including BlackRock, Ark Invest/21Shares, VanEck, WisdomTree, Invesco, Fidelity, and Valkyrie, filed amended S-1 forms for their spot Bitcoin ETFs with the U.S. SEC. This was considered the final step in the approval process.

The submission of amended S-1 forms revealed sponsor fees and strategic adjustments, providing insight into the financial structures supporting these potential spot Bitcoin ETFs.

BlackRock, for instance, set its sponsor fee at 0.3%, with a reduced rate of 0.2% for the first year or until the ETF reaches $5 billion in assets. VanEck chose one of the lowest permanent fees among issuers at 0.25%, while WisdomTree opted for a higher 0.5% fee.

Additionally, ARK Invest and 21Shares announced they would waive their 0.25% fee for the first $1 billion in transactions.

An AP is typically a large bank or investment firm designated by an ETF issuer to issue and redeem shares of exchange-traded funds (ETFs).

APs are pivotal in the ETF market, ensuring liquidity by creating and redeeming ETF shares according to market demand.

This process helps maintain ETF prices closely aligned with the net asset value of the underlying assets. These entities procure the required underlying assets to create ETF shares and receive a package of shares in return, referred to as a creation unit.

BlackRock’s selection of authorized participants for its spot Bitcoin ETF, alongside the surge of amendments to existing spot BTC ETF applications, indicates a notable advancement in the U.S. Bitcoin ETF journey.

The forthcoming weeks and months will carry substantial weight in determining the fate of these applications and their potential ramifications on the cryptocurrency market.

Blackrock Now Holds 257,281 BTC worth $17.7 billion

Bitcoin ETFs made a relatively flat start to April 2024, with Grayscale’s GBTC at the forefront of another week of significant outflows.

But unlike Grayscale, Blackrock recorded a week of positive net flows which saw its current balances soar above 257,281 BTC worth approximately $17.7 billion at the time of publication on April 6.

The $17.7 billion holdings now put Blackrock in first place as the publicly-traded US company with the largest Bitcoin portfolio, ahead of Michael Saylor’s MicroStrategy which currently holds BTC balances worth $14.6 billion, at press time.