BlackRock has recently expanded its list of authorized participants (APs) for its spot Bitcoin ETF, adding four more Wall Street firms to bring the total number of APs to nine. The world’s largest asset manager, BlackRock, now includes Citi, Citadel, Goldman Sachs, and UBS as APs for its Bitcoin-based fund.

This update was disclosed through an amendment to the ETF’s Form S-1 submitted to the Securities and Exchange Commission (SEC) on April 5. The addition of these APs follows a series of amended forms submitted by BlackRock and other financial firms for their Bitcoin ETF applications to the SEC.

Key players in the financial industry, such as Ark Invest/21Shares, VanEck, WisdomTree, Invesco, Fidelity, and Valkyrie, filed amended S-1 forms for their spot Bitcoin ETFs on Jan. 8, marking the final step in the approval process. These filings revealed sponsor fees and strategic adjustments, shedding light on the financial structures supporting these potential spot Bitcoin ETFs.

BlackRock, for example, set its sponsor fee at 0.3%, with a reduced rate of 0.2% for the first year or until the ETF reaches $5 billion in assets. VanEck opted for one of the lowest permanent fees at 0.25%, while WisdomTree chose a higher 0.5% fee. ARK Invest and 21Shares even announced they would waive their 0.25% fee for the first $1 billion in transactions.

Authorized participants play a crucial role in the ETF market, ensuring liquidity by issuing and redeeming shares of exchange-traded funds (ETFs) according to market demand. They help maintain ETF prices closely aligned with the net asset value of the underlying assets by creating and redeeming ETF shares.

BlackRock’s selection of authorized participants for its spot Bitcoin ETF, along with the surge of amendments to existing spot BTC ETF applications, signifies a significant advancement in the U.S. Bitcoin ETF journey. The coming weeks and months will be pivotal in determining the fate of these applications and their potential impact on the cryptocurrency market.

In related news, the SEC has initiated a public comment phase for three proposed Ethereum spot ETFs, indicating progress in the potential approval process for these offerings. Grayscale Investments, Fidelity, and Bitwise are each submitting ETF proposals for Ethereum.

While there is optimism surrounding Bitcoin ETF approvals, analysts are less bullish on the approval of Ethereum ETFs due to historical SEC resistance and complexity surrounding Ethereum’s classification as a security. Despite these challenges, stakeholders like ConsenSys advocate for the approval and mainstream adoption of Ethereum-based offerings, emphasizing the robust security measures inherent in Ethereum’s design to address regulatory concerns and facilitate the approval process.

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