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BlackRock to Pull Bulk of U.S. ETF Assets From State Street

  • Firm moving 85% of holdings to Citi, JPMorgan and BNY Mellon
  • BlackRock held $2.2 trillion of ETF assets at end of September
BlackRock headquarters in New York.

BlackRock headquarters in New York.

Photographer: Jeenah Moon/Bloomberg
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BlackRock Inc., the world’s largest issuer of exchange-traded funds, will move most of its U.S. ETF assets from State Street Corp. to reduce its reliance on the bank’s custody services. 

BlackRock, with $2.2 trillion of U.S. ETF holdings at the end of the third quarter, will shift 40% to Citigroup Inc., 30% to JPMorgan Chase & Co. and 15% to Bank of New York Mellon Corp., BlackRock said Tuesday in a statement. The rest will stay with Boston-based State Street, one of BlackRock’s main rivals in the ETF business.