BlackRock, the world’s largest asset manager, has updated the roster of Authorized Participants (APs) for its spot Bitcoin exchange-traded fund (ETF), IBIT, today. The ETF, operational since January 11, 2024, enables investors to access Bitcoin without direct ownership of the digital assets.

The latest prospectus reveals the addition of five new Authorized Participants, bringing the total to nine APs from the previous four. The newcomers include ABN AMRO Clearing USA LLC, Citadel Securities LLC, Citigroup Global Markets, Inc., Goldman Sachs & Co. LLC, and UBS Securities LLC.

Authorized Participants play a critical role in creating and redeeming ETF shares, managing the transfer of cash to and from the Trust Administrator through designated accounts. The expanded AP list aims to bolster IBIT's liquidity and accessibility for investors.

Previously, the roster of Authorized Participants included Jane Street Capital, LLC, JP Morgan Securities LLC, Macquarie Capital (USA) Inc., and Virtu Americas LLC, as per the prior prospectus. The document also notes that more APs may be added at the Sponsor's discretion.

The inclusion of major financial institutions like Goldman Sachs and Citigroup as Authorized Participants underscores the growing acceptance of Bitcoin and the demand for regulated investment options in digital assets.

These updates coincide with the stellar performance of both IBIT and Fidelity’s Wise Origin Bitcoin Fund (FBTC) since their launch. Bloomberg data indicates that these spot Bitcoin ETFs have consistently attracted net inflows, surpassing thousands of other funds, a feat achieved by only a handful in history.

The sustained investor interest in IBIT and FBTC is evident as they continue to draw inflows even on days when Bitcoin's price declines. IBIT alone constitutes over half of BlackRock’s net flows year-to-date, outpacing inflows of any of their other 420 ETFs combined. Similarly, FBTC has accounted for 70% of Fidelity’s total inflows, attracting five times more investment than any other Fidelity ETF. This performance underscores the growing acceptance of cryptocurrencies and the demand for regulated investment vehicles offering exposure to digital assets.

As spot Bitcoin ETFs gain traction, the expansion of the Authorized Participant list is a positive development that could further contribute to the fund’s growth and stability.