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BlackRock’s Bitcoin ETF Gains Major U.S. Bank Partners
Since its launch in January, BlackRock’s spot Bitcoin ETF has seen an influx of major U.S. banks as partners. Notably, this includes one Wall Street giant that has historically been critical of the crypto space.
New Bank Partners
In recently filed post-effective amendments, BlackRock revealed that Citadel, Goldman Sachs, UBS, and Citigroup have become “authorized participants” for its iShares Bitcoin Trust (IBIT). An authorized participant is tasked with creating and redeeming fund shares to ensure that IBIT’s price reflects that of Bitcoin.
BlackRock has confirmed the addition of these new banks as authorized participants, with the prospectus indicating the possibility of more partners being added in the future at the sponsor’s discretion.
The latest banks join an already prestigious lineup of partners, including ABN AMRO, JP Morgan, Jane Street, Macquarie Capital, and Virtu, who were initially named in the fund’s January 10 prospectus.
Goldman Sachs’ Involvement
While news of the recent additions has surfaced, filings show that Goldman Sachs, UBS, and Citigroup were incorporated as authorized participants as early as March 4. Speculation regarding Goldman Sachs’ collaboration with BlackRock and Grayscale has been circulating for some time.
Goldman Sachs’ entry into the Bitcoin ETF space seems contradictory to its executives’ previous views on crypto. Despite previous remarks dismissing crypto as a viable investment asset class, the bank’s wealth management CIO Sharmin Mossavar-Rahmani stated a lack of belief in crypto among herself and the bank’s clients.
However, Goldman Sachs has a dedicated digital assets unit, with its Asia-Pacific lead Max Milton suggesting that their largest clients are increasingly active or interested in entering the crypto space.
Industry Observations
Bitwise CIO Matt Hougan has noted significant demand from both retail clients and hedge funds for spot Bitcoin ETFs. He anticipates continued growth in ETF adoption as national account platforms gradually embrace these products.
Market analyst Eric Balchunas highlighted the significance of major firms now expressing interest in Bitcoin ETFs, attributing this shift to the success and popularity of these investment vehicles.
Since their launch on January 11, Bitcoin ETFs have attracted more than $12 billion in net inflows. BlackRock’s ETF alone currently boasts over $16 billion in assets, underscoring the growing institutional interest in the crypto market.
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