Connect with us

Hi, what are you looking for?


BlackRock’s IBIT ETF Soars: Surpasses $2 Billion Market Cap in Crypto Milestone

BlackRock’s Bitcoin (BTC) exchange-traded fund (ETF) has achieved a significant milestone by surpassing $2 billion in assets under management (AUM) just two weeks after its launch on the Nasdaq.

The ETF, known as the iShares Bitcoin Trust (IBIT), has seen its market capitalization reach $2.11 billion due to Bitcoin’s recent price performance.

Bitcoin’s price broke through the $42,000 mark for the first time in nearly seven days, following a sell-off that occurred after the launch of ETFs on January 11.

The strong intraday performance of the cryptocurrency has contributed to the rapid growth of BlackRock’s IBIT, solidifying its position as a leader in attracting investors’ capital.

Yes, the #Bitcoin price has pushed $IBIT‘s assets beyond $2 billion. This plus likely new flows today should mean it will be above $2 billion at close

— James Seyffart (@JSeyff) January 26, 2024

Fidelity’s Wise Origin Bitcoin Fund (FBTC) is currently trailing behind with $1.8 billion in inflows over the past 10 days.

BlackRock, as the world’s largest asset manager, is leveraging its market reputation to appeal to a broader audience with its crypto-based product.

While other asset managers like VanEck targeted early adopters and the crypto community through television ads promoting their Bitcoin ETFs, BlackRock took a different approach.

The company released a two-minute video featuring one of its executives explaining Bitcoin’s value proposition and how investors can gain exposure to its ETF, specifically targeting baby boomers.

Annual Fees to Determine Winner of Spot ETF Race

The annual fees charged by ETF issuers also play a role in attracting capital.

BlackRock set its fee for the iShares ETF at 0.12% for the first 12 months or until the first $5 billion in assets under management, after which it plans to increase it to 0.25%.

Other issuers, such as ARK Invest, charge 0.21%, VanEck lists a fee of 0.25%, and Bitwise charges 0.20%.

These fees are deducted from the ETF’s performance rather than billed directly to investors, reducing investors’ overall returns.

Likewise, Aurelie Barthere, Principal Research Analyst at Nansen, said in a recent interview with that she expects lower-fee ETFs to attract more inflows in the short term.

The competitive landscape among Bitcoin spot ETF providers, according to Barthere, will be shaped by factors like reputation, size, existing footprint, and management fees.

“Reputation/size/existing footprint + management fee will probably lead to some leaders dominating the market,” she predicted.

JPMorgan analysts have also predicted that the success of these newly created ETFs will hinge on fees and liquidity.

Given the high 1.5% fees associated with GBTC, they expect significant outflows from this Bitcoin trust.

Meanwhile, Bloomberg analyst James Seyffart expects Bitcoin ETFs to attract $10 billion in capital over the first year.

The rapid growth of BlackRock’s IBIT demonstrates the increasing demand for cryptocurrency investment products and suggests that the broader adoption of Bitcoin by traditional financial institutions is well underway.

As more investors seek exposure to the crypto market, ETFs provide a convenient and regulated avenue for them to participate in the potential upside of cryptocurrencies like Bitcoin.

The post BlackRock’s IBIT ETF Soars: Surpasses $2 Billion Market Cap in Crypto Milestone appeared first on Cryptonews.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



The United States Securities and Exchange Commission (SEC) will continue to “ramp up” its ruling-by-enforcement approach in 2024, Norton Rose Fulbright’s 2024 FinTech Outlook...


A US appeals court has upheld the prior sentencing of “My Big Coin” fraud founder Russell Crater. Crater will serve over 8 years and...


On February 25, renowned crypto attorney Steven Nerayoff expressed concerns that the legal challenges faced by former Binance CEO and founder Changpeng Zhao could...


Cryptonews Podcast host Matt Zahab sat down once again with US-based blockchain entrepreneur and Founder of ETHDenver John Paller for another exciting interview. The two...


Leading DEX Uniswap has witnessed a sudden price retreat as the wider markets bounce from recent lows. This article will provide an analysis of...


Binance Labs, the venture capital arm of cryptocurrency exchange Binance, has demonstrated a significant vote of confidence in the future of Bitcoin by strategically...

You May Also Like

Financial Advisors


Financial Advisors


Financial Advisors

The humongous outbreak of the dreaded coronavirus has brought about a groundbreaking change in what the world perceived as ‘normal’. With an estimated 280,391,189...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 Respect Investment. All Rights Reserved.