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According to Eric Balchunas, lead ETF analyst at Bloomberg, financial giant BlackRock has update the list of authorized participants on its Bitcoin ETF prospectus with many big names. These include newcomers like US multinational hedge fund Citadel, investment banking giant Goldman Sachs, Swiss-based investment bank and financial services company UBS, and major investment bank Citigroup.
According to Balchunas, these authorized participants could have been on the list earlier, but they were “ashamed” of being associated with the product before its launch. However, now that BlackRock's Bitcoin ETF has ended up being a smash hit, they are more comfortable being identified as authorized participants.
As reported by U.Todayit took BlackRock just seven weeks to reach $10 billion in assets under management with its Bitcoin ETF, which is a new record.
Ahead of Securities and Exchange Commission approval in early January, BlackRock revealed that global proprietary trading firm Jane Street Capital and banking giant JP Morgan would be among its authorized participants. The latter's inclusion was somewhat unexpected due to JPMorgan CEO Jamie Dimon's continued skepticism toward Bitcoin. As reported by U.TodayDimon expressed support for a ban on cryptocurrencies during a congressional hearing in December.
Authorized participants are expected to create and redeem shares for the ETF issuer. They allow these shares to be exchanged for cash or securities.
According to Balchunas, the inclusion of Citadel and other names means that “big companies” now want in on the Bitcoin action. Additionally, they are now comfortable being publicly associated with Bitcoin.
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