Three Major Companies Dominate the ETF Sphere: Implications for Bitcoin ETFs

The American ETF market, valued at approximately $8 trillion, largely relies on three key firms. A vital part of this market, the authorized participants (APs) - a specific kind of broker-dealer - have remained limited in number, even with the market's rapid expansion. These APs are essential for ensuring liquidity and the smooth operation of North American ETFs.



Bloomberg's examination of over 3,400 fund filings reveals that the majority of ETF flows in the U.S. are dominated by three entities: Bank of America, Goldman Sachs, and JPMorgan. These three APs manage more than 90% of capital movements in many funds. Intriguingly, numerous ETFs depend solely on one AP for liquidity, as indicated by the latest comprehensive quarterly data.



For potential Bitcoin ETFs in 2024, this situation poses certain risks. Relying on a few APs


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