Following the continuation of funds to draw billions of dollars from investors, BlackRock (BLK) has added five more authorised participants (APs) to the iShares Bitcoin Trust (IBIT), increasing the total to nine.
A prospectus filed with the U.S. Securities and Exchange Commission (SEC) lists the new APs as clearing house ABN AMRO and Wall Street financial heavyweights Goldman Sachs, Citadel, Citigroup, and UBS. They join Virtu Americas, JP Morgan, Masquarie, and Jane Street Capital.
But according to a January article, Goldman Sachs was in discussions with issuers to become an AP and was hoping to take a major position in the bitcoin ETFs.
APs are a crucial component of the ETF process since they adjust the share supply in response to shortages or surpluses, helping to create liquidity. Many APs are found in large ETFs, and IBIT has grown fairly large in less than three months of operation, managing around $18 billion in assets as of yesterday’s close.
The involvement of Goldman Sachs is especially noteworthy because, as of this week, the bank’s chief investment officer for wealth management stated that cryptocurrency has “no value” and that it is not under any pressure to get involved in the market, despite the fact that other key players in the industry are making significant moves.
The Goldman story is similar to that of JPMorgan, whose CEO, Jamie Dimon, openly criticised cryptocurrencies for years before joining BlackRock’s IBIT as an AP when the fund debuted in January.