The launch of new spot bitcoin exchange-traded funds (ETFs) has been a significant event, amassing an impressive $11.82 billion in trading volume over just four days. Standing out in this burgeoning field, alongside Grayscale’s GBTC, is Blackrock’s IBIT. This fund has emerged as a prominent player in terms of both trading volume and the amount of bitcoin (BTC) it holds. In its initial four days on the market, IBIT has already recorded a trading volume of $1.28 billion, representing 10.82% of the total volume across all funds.
IBIT bitcoin holdings as of Jan. 17, 2024.
In a recent dialogue with Bloomberg, Rachel Aguirre, the lead for Blackrock’s Ishares U.S. products, shed light on the fund’s recent inflows. She indicated that IBIT has been drawing attention from various sectors. “We’re seeing interest from retail, self-directed investors, and some who were ready to invest day one,” she remarked in the interview. Aguirre also expressed Blackrock’s enthusiasm, noting the company is “very excited” about investors exploring this new asset category for the first time.
When queried about model portfolios and the possibility of Blackrock incorporating “allocation to bitcoin in the weeks and months ahead,” Aguirre responded with a smile, choosing not to reveal any specifics, simply stating she could not comment on that matter. Aguirre noted that Blackrock is “focused” on “understanding what education needs” are for its clients. The firm wants to provide investors with education to support them “along their investing journey.”
Besides ranking second in volume just behind GBTC, the IBIT fund currently possesses 25,067 BTC, valued slightly above $1 billion as per the data on the IBIT website. When it comes to spot bitcoin ETFs in the United States, Blackrock’s ETF maintains the second-largest reserves, trailing only behind the holdings of Grayscale’s GBTC.
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