BlackRock Resumes Issuing Gold ETF Shares After Suspension

  • Firm was forced to suspend issuance of new shares Friday
  • BlackRock didn't register shares fast enough as demand soared

BlackRock Inc. has resumed issuing shares in its $7.8 billion iShares Gold Trust after temporarily suspending them on Friday because it failed to anticipate a surge in demand.

The world’s largest asset manager stopped issuance after it had exhausted its supply of registered shares and didn’t register more of them with the U.S. Securities and Exchange Commission fast enough. The firm was caught off guard as demand for the metal surged.

BlackRock said in a statement on Monday that during the suspension trading was orderly and authorized participants were still able to redeem shares even though none requested to do so.

BlackRock’s gold fund isn’t a typical ETF. It is registered as an exchange-traded commodity, and regulations require that the firm make a filing when it wants to create new shares in excess of those already registered.

Before it's here, it's on the Bloomberg Terminal.