The inclusion of Goldman Sachs in this group is surprising, considering the previous statements of Sharmin Mossavar-Rahmani, investment director of the wealth management unit, who had expressed that BTC was not an attractive asset to invest in, even comparing it to the “tulip crisis” of the 17th century.
Since its approval at the beginning of January, the IBIT of BlackRock has been the main destination of net inflows into exchange-traded funds. As of March, the fund managed assets totaling $17.6 billion.
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He iShares Bitcoin Trust Exchange Traded Fund (ETF) (IBIT) from BlackRock, which tracks the performance of Bitcoin (BTC) in spot, continues to attract the interest of various institutional investors. In recent days, several Wall Street financial giants joined the list of Authorized Participants (PA) of the fund, as revealed in a document presented to the Securities and Exchange Commission (SEC).
Among these new participants are recognized entities such as Goldman Sachs, Citigroup, UBS, Citadel Securities and ABN AMRO, joining established names on the list such as JP Morgan, Jane Street Capital and Macquarie Capital.
According to BlackRock, A PA is a financial institution in charge of dynamically managing the creation and the redemption of ETF units in the primary market. This process adjusts the number of shares in circulation and helps maintain the price of the ETFs aligned with the value of its underlying assets.
Each PA has an agreement with the ETF issuer that grants it the right, but not the obligation, to create and redeem shares of the ETF. PAs may act on their own behalf or on behalf of market participants, without receiving direct compensation from the ETF issuers.
ETF and Bitcoin: how the cryptocurrency will continue
ETFs operate in two markets with different types of participants. Most trading takes place on the secondary market, where investors buy and sell existing ETF holdings.. Prices are determined in real time and transaction costs are influenced by the spread between the buying and selling prices.
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On the other hand, in the primary market, large institutions (PAs) negotiate with ETF issuers to create or redeem units according to market demand. Retail investors do not participate in this market, which generally has a lower trading volume than the secondary market.
The inclusion of Goldman Sachs in this group is surprising, considering the previous statements of Sharmin Mossavar-Rahmani, investment director of the wealth management unit of the American entity, who had expressed that BTC was not an attractive asset to invest in, even comparing it to the “tulip crisis” of the 17th century.
Since its approval at the beginning of January, the IBIT of BlackRock has been the main destination of net inflows into exchange-traded funds. As of March, the fund managed assets totaling $17.6 billion.
Source: Ambito
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