🟢 BlackRock’s Bitcoin ETF Surpasses $3 Billion in Inflows, Becomes Fifth-Largest of All US ETFs in 2024
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BlackRock, the world’s largest asset manager, has seen its spot Bitcoin ETF (IBIT) attract more than $3.1 billion in inflows since its launch less than a month ago, making it the fifth-largest ETF by inflows across all markets in 2024. IBIT offers investors exposure to the actual Bitcoin price, unlike futures-based ETFs that track Bitcoin derivatives contracts.
IBIT has also outperformed its competitors, such as Fidelity’s FBTC and Bitwise’s BITB, which have received $2.7 billion and $2.4 billion in inflows, respectively. IBIT has benefited from BlackRock’s reputation, size, and low fees of 0.95%, compared to 1.5% for FBTC and 1.25% for BITB.
However, IBIT has also faced some challenges, such as the volatility of Bitcoin price, the regulatory uncertainty around crypto assets, and the competition from Grayscale’s GBTC, which converted from a closed-end fund to an ETF in January. GBTC, which has a 2% fee, has seen $3.5 billion in outflows since its conversion, but still remains the largest Bitcoin ETF with $26 billion in assets.
BlackRock’s IBIT is part of the growing trend of spot Bitcoin ETFs, which offer a more user-friendly and cost-effective way to invest in Bitcoin than futures-based ETFs. Spot Bitcoin ETFs are seen as a major milestone for the crypto industry, as they bring more mainstream adoption, liquidity, and legitimacy to the digital asset space.