Bitcoin ETF performs well! BlackRock adds IBIT authorized participants list: Citadel, Citigroup, etc.

BlackRock and Vanguard are taking action to increase market participation and liquidity by adding authorized participants (APs) to their Bitcoin spot ETF - IBIT. Since its launch on January 10, 2024, the ETF has been the largest in terms of fund inflows among all related ETFs.

Major Financial Giants Added to the List of Authorized Participants

Updated prospectus reveals that BlackRock has expanded its list of Authorized Participants (AP) from four to nine by including five prominent financial institutions. The newly added institutions are ABN AMRO Clearing USA LLC, Citadel Securities LLC, Citigroup Global Markets, Inc., Goldman Sachs & Co. LLC, and UBS Securities LLC. These additional institutions will enhance trust management services for ETF share creation and redemption processes.

Benefits of Expanding the Authorized Participant (AP) Network

Authorized Participants play a crucial role in maintaining the efficiency of ETF operations. They facilitate seamless fund transfers between funds and trusts, ensuring the efficient operation of ETFs and maintaining attractiveness to investors. The expansion of the AP network is expected to significantly increase liquidity for IBIT, making it more accessible to a diverse group of investors.

IBIT Continues to Lead

Since its launch, BlackRock's IBIT and Fidelity's FBTC have outperformed significantly compared to other funds. These ETFs not only outperformed other funds but also set a record of fund inflows for 49 consecutive days, a rare achievement in ETF history.

Bitcoin ETF Brings Substantial Capital to BlackRock and Fidelity

Even during periods of declining Bitcoin prices, the continued inflow of investors into IBIT and FBTC highlights the strong confidence in these products.

BlackRock's IBIT contributed to over half of the company's net inflows this year, doubling the inflows of any of its other 420 ETF products. Similarly, Fidelity's FBTC attracted 70% of its total inflows, five times more capital than any other Fidelity ETF.

Impact on Future Growth

The inclusion of these heavyweight financial players as Authorized Participants for the IBIT ETF not only underscores the increasing mainstream acceptance of Bitcoin but also reflects the growing demand for regulated investment channels to access digital assets. This move not only enhances the stability and growth prospects of the IBIT ETF but also solidifies the compliance status of cryptocurrencies as a portfolio component.