BlackRock’s Bitcoin ETF surpasses $2 billion in assets in 10 days
BlackRock’s iShares Bitcoin ETF (IBIT), the first bitcoin exchange-traded fund (ETF) in the U.S., has achieved a remarkable feat by surpassing $2 billion in assets under management (AUM) in just 10 days of trading, according to data from Bloomberg Terminal.
IBIT, which started trading on January 16, 2024, on the New York Stock Exchange, tracks the performance of bitcoin and allows investors to gain exposure to the leading cryptocurrency without having to buy or store it directly. The fund charges a 0.95% annual fee and is backed by physical bitcoins held in cold storage by Coinbase Custody.
The fund’s rapid growth reflects the strong demand for bitcoin among institutional and retail investors, as well as the credibility of BlackRock, the world’s largest asset manager with over $10 trillion in AUM. BlackRock now holds almost 50,000 bitcoins through its ETF, making it one of the largest holders of the digital asset.
IBIT’s AUM has been boosted by both the inflow of capital and the appreciation of bitcoin’s price, which has surged past $40,000 in the past week. On the ninth day of trading, the fund saw a massive investment of about $170 million, which allowed it to acquire around 4,300 bitcoins, bringing its total holdings to 49,952 bitcoins.
IBIT’s performance stands out among its competitors in the cryptocurrency space. While Grayscale’s Bitcoin Trust (GBTC), the largest bitcoin fund in the world, converted to a spot ETF with almost $30 billion in AUM, IBIT has shown a faster growth rate and a lower fee structure. IBIT also has an edge over other bitcoin ETFs that have been approved or are awaiting approval by the U.S. Securities and Exchange Commission (SEC).
Nate Geraci, President of ETF Store, a leading provider of ETF research and analysis, commented that IBIT ranks third among the 600-plus ETFs launched in the past year in terms of asset gathering. He expects that IBIT could soon become the top ETF in terms of assets, surpassing more traditional funds that focus on sectors such as technology, healthcare, and energy.
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