BlackRock's Bitcoin ETF Assets Surpass $2 Billion Milestone
Date: 2024-01-27 Author: Dima Zakharov Categories: BUSINESS
BlackRock's spot Bitcoin ETF may soon achieve a major milestone as Bitcoin's price jumped by approximately 5% on Friday, surpassing $42,000 for the first time in over a week. This surge could value the 49,952 Bitcoins held by the fund as of January 25th at over $2 billion, assuming no net outflows on Friday. This achievement would make BlackRock's new ETF the first among entirely new spot Bitcoin exchange-traded funds to reach this threshold.
According to data from Bloomberg Intelligence, Grayscale's spot Bitcoin ETF currently has assets under management (AUM) worth around $20 billion, but it is a conversion of their flagship GBTC fund.
"The Bitcoin price increase has pushed IBIT's assets above $2 billion. This, along with potential new inflows today, should mean assets will exceed $2 billion by the close," wrote Bloomberg Intelligence analyst James Seyffart in an X message.
Yahoo Finance data reveals that the total trading volume of spot Bitcoin ETFs has exceeded $22 billion since investors gained the ability to buy and sell these instruments earlier this month.
The top three leaders in trading volume are Bitcoin ETFs offered by Grayscale, BlackRock, and Fidelity, all of which manage nearly $2 billion in AUM each. Products launched by Ark Invest and Bitwise each manage assets exceeding $500 million.
According to Yahoo Finance, volumes have slowed down from the first day of trading when purchases and sales of new products reached $2.3 billion.
