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 https://t.co/IgOmEYB3qw pic.twitter.com/qFDZsvylo9
— 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.
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
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