In a significant development for the cryptocurrency market, BlackRock’s iShares Bitcoin Trust has become the largest dedicated Bitcoin fund, accumulating nearly $20 billion in total assets since its U.S. listing earlier this year. year.
Bloomberg data reveals that as of Tuesday, the exchange-traded fund held $19.68 billion worth of Bitcoin, surpassing Grayscale Bitcoin Trust’s (GBTC) $19.65 billion position. Fidelity Investments’ offering is the third-largest fund with $11.1 billion in assets.
BlackRock’s iShares Bitcoin Trust Leads Cash Flow
The launch of BlackRock and Fidelity Bitcoin ETF, alongside seven others, January 11 marked a pivotal moment for the crypto industry. Simultaneously, the Grayscale vehicle, in operation for more than a decade, became an ETF.
These developments have significantly increased the value of Bitcoin. accessibility for institutional and retail investors and sparked a rally in the price of the world’s largest cryptocurrency, which skyrocketed to an all-time high of $73,700 on March 14.
Since its creation, the iShares Bitcoin Trust attracted $16.5 billion in capital flows, making it the most sought-after fund by investors. Conversely, the Grayscale fund experienced capital outflows of $17.7 billion during the same period.
A BlackRock spokesperson told Bloomberg that the company is pleased with the success of the iShares Bitcoin Trust. The spokesperson noted that investors prefer to access Bitcoin through the “convenience and transparency” of an institutional-grade ETF. The company remains committed to educating investors and providing easy access to Bitcoin.
Bitcoin ETFs Thrive Despite Volatility Issues
The Securities and Exchange Commission (SEC) reluctantly approved the first U.S. spot-Bitcoin ETFs in January after a 2023 court ruling caused a reversal of the case brought by Grayscale.
The move was key to resolving issues facing the Grayscale Bitcoin Trust, an open-end corporation, where shares sometimes traded at significant premiums or discounts to its price. net asset value.
The Bitcoin group of funds, with a combined total of $58.5 billion in assets to date, represents one of the best-performing new categories of ETFs. However, critics argue that the inherent volatility of digital assets makes them unsuitable for widespread adoption, even within ETFs.
While some countries restrict or prohibit investor access to cryptocurrencies, major asset managers like Vanguard Group have explicitly declared that they have no plans to offer crypto-related products. BlackRock and Vanguard remain the two largest asset management companies in the world.
The introduction of ETFs has contributed to the recovery of Bitcoin, as its value has quadrupled since the beginning of last year.
Despite a slight decline of less than 1%, with Bitcoin trading at $67,600 on Wednesday, the continued success of the iShares Bitcoin Trust and the growing popularity of cryptocurrency-based ETFs continue to shape the bitcoin landscape. investment in digital assets.
Featured image from Shutterstock, chart from TradingView.com
