BlackRock Expands Authorized Participants List for Bitcoin ETF

BlackRock, the world’s largest asset manager, has expanded the list of authorized participants (APs) for its spot Bitcoin ETF, adding esteemed Wall Street firms like Citi and Goldman Sachs. This brings the total number of APs to nine, showcasing BlackRock’s commitment to the cryptocurrency sector.

The addition of these firms was disclosed through an amendment to the ETF’s Form S-1, submitted to the SEC on April 5. This follows a series of amended applications for Bitcoin ETFs submitted by financial giants earlier this year. Notably, industry leaders filed revised S-1 forms for their spot Bitcoin ETFs on January 8, indicating progress in the approval process.

The amendments reveal details such as sponsor fees and strategic adjustments. BlackRock’s sponsor fee is set at 0.3%, with a promotional rate of 0.2% until the ETF reaches $5 billion in assets. VanEck opted for a lower permanent fee of 0.25%, while WisdomTree chose a higher fee of 0.5%. ARK Invest and 21Shares waived their 0.25% fee for the first $1 billion in transactions.

Authorized participants are crucial in the ETF market, ensuring liquidity by issuing and redeeming ETF shares. They play a vital role in maintaining ETF prices in line with the net asset value of underlying assets. The expansion of BlackRock’s APs for its Bitcoin ETF signifies progress in the journey towards a U.S. Bitcoin ETF.