• Thu. May 30th, 2024

BlackRock Aligns with Wall Street Companies for Bitcoin ETF

Maria Bartiromo

ByMaria Bartiromo

Apr 8, 2024

BlackRock has updated its Bitcoin Exchange Traded Fund (ETF) prospectus. The modifications include the participation of prominent Wall Street firms like Goldman Sachs and Citigroup, indicating a cooperative endeavor to launch a Bitcoin Exchange Traded Fund (ETF). BlackRock is looking to increase the legitimacy and credibility of its Bitcoin ETF offering by collaborating with well-known financial firms like Citigroup and Goldman Sachs.

Regardless of the ongoing legal barriers and unpredictabilities surrounding the cryptocurrency space, BlackRock’s alliance with major players in the sector suggests a deliberate attempt to manage the regulatory environment and get past obstacles to market access.

Analysis on the Decrypt platform explained that the institutional investors’ growing recognition of cryptocurrencies as an asset class has led to an increasing trend of partnerships between cryptocurrency firms and traditional financial institutions. This has blurred the boundaries between the two domains and stimulated innovation in both sectors.

More Companies Introduced to BlackRock’s Bitcoin ETF

More bigwigs on Wall  Street are considering the chances for investment and innovation in the digital asset field. This development will likely open the door for a wave of institutional capital entering the market.

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This accomplishment places the iShares Bitcoin Trust at the forefront of the competition in introducing a Bitcoin ETF. It highlights BlackRock’s expanding influence and market dominance in cryptocurrency investment.

iShares Bitcoin Trust has displayed a firm conviction since its inception. The company says it is working to become a leveler in Bitcoin ETF market; to create an enabling environment for traders to take advantage of this demand and become the go-to option for investors who want to invest in Bitcoin through conventional channels. 

On the other hand, Bitwise Chief Information Officer (CIO) Matt Hougan, as one of the strong rivals of the spot Bitcoin ETF industry, referenced the increasing demand from hedge funds and retail clients, predicting that the growth of the ETF will persist for years, considering the growing account on different platforms, as a result of gradual product adoption.

Five More Companies Listed As Authorized Participants, Representatives Comment 

The ETF industry had companies like Virtu Americas, Jane Street Capital, Macquarie Capital, and JPMorgan Securities as their Authorized Participants (APs) before a resolution to admit more players was reached. Five more Wall Street companies have been added to BlackRock’s Bitcoin ETF space.

The successful participants are Goldman Sachs, Citadel, Citigroup Global Market, ABN AMRO Clearing, and UBS Securities, an event that is said to intensify the support for the cryptocurrency industry further. Analysis on Crypto News Land noted that the mentioned companies have discreetly provided liquidity to the ETF, hence citing the complexity of the cryptocurrency industry.

The Bitcoin ETF has generated over $12 billion from its inception on January 11, while the BlackRock ETF has garnered over $16 billion. Goldman Sachs’s head of  Asia-Pacific, Max Milton, in an interview with Decrypt, the bank has a unique digital assets unit. He said this unit has the most extensive active client base and is currently exploring other ways to maintain relevance in that space.

Bitcoin Halving Linked to the New Price Volatility

Amid the recent upsurge in the trading volume of Bitcoin ETFs that has caused it to reach $111 billion in early March, the demand has continued to rise constantly. Spectators have raised concerns over the sweeping rise in the Bitcoin ETF and expressed the consequences it would have on the Federal Reserve’s policies on the cryptocurrency markets.

However, the current Bitcoin halving has been accused of striking a new price volatility, triggering speculation on Wall Street. Amid the current price volatility, iShares Bitcoin Trust (IBIT) by BlackRock has dominated the Assets Under Management (AUM) and trading volume, thereby exceeding the performance of its competitors like Fidelity Investment funds and Grayscale, which have emerged as the strongest in the niche so far.

Meanwhile, the Security and Exchange Commission (SEC) has promoted the idea of creating cash and initiating a redemption system where the Bitcoin ETF market can avoid getting manipulated or becoming a victim of conventional in-kind methods.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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