Home News BlackRock’s Spot Bitcoin ETF Now Holds Over $1 Billion in Bitcoin

BlackRock’s Spot Bitcoin ETF Now Holds Over $1 Billion in Bitcoin

by SuperiorInvest

Key takeaways

  • BlackRock’s spot bitcoin ETF, or IBIT, had more than $1 billion worth of bitcoin just five days after it began trading.
  • IBIT is the second bitcoin spot ETF to achieve this milestone, and Grayscale Bitcoin Trust continues to dominate the market.
  • Despite Grayscale’s dominance, market data indicates funds are exiting its spot bitcoin ETF toward alternatives from BlackRock, Fidelity and others.
  • Analysts say demand for spot bitcoin ETFs from retail investors is modest, but that may be because not all brokerages offer access to the product.

BlackRock’s (BLK) iShares Bitcoin Trust (IBIT) now holds more than $1 billion worth of bitcoin, reaching the milestone just five days after the exchange-traded fund (ETF) began trading on January 11.

The IBIT was a quick step up to $1 billion, but not the fastest. SPDR Gold Trust (GLD) raised $1 billion in just three days in 2004, according to Bloomberg senior ETF analyst Eric Balchunas.

What’s happening with Bitcoin spot ETFs?

Although spot bitcoin ETFs were first listed on US exchanges last week, there are already some clear winners and losers in the race for dominance in this niche market.

Despite the significant exits, Grayscale Bitcoin Trust (GBTC) still represents almost 90% of the market, according to data shared by Bloomberg analyst James Seyffart. That dominance is largely due to its previous existence as a trust before its conversion to an ETF.

BlackRock’s IBIT and Fidelity Wise Origin Bitcoin Fund (FBTC) have been the most prominent alternatives for investors exiting GBTC following their approval last week by the US Securities and Exchange Commission (SEC). .

Rachel Aguirre, head of BlackRock’s US iShares product, said BloombergTV that the ETF is seeing flows from many different directions, including retail investors and self-employed investors.

Who buys spot Bitcoin ETFs?

According to Vanda Research, retail investor appetite for spot bitcoin ETFs remains “modest.” This could also be a function of access to these products. Some brokerages, such as Vanguard, do not offer spot bitcoin ETFs to their clients, while others offer only some of those available.

The bitcoin ETF spot market as a whole is expected to grow in the coming years, with some analysts predicting it will grow to $100 billion. In terms of new money entering the bitcoin (BTCUSD) space, Morgan Creek Capital CEO Mark Yusko has said that these new products could open the door for up to $300 billion to enter the bitcoin market.

Source Link

Related Posts