tl;dr
BlackRock's iShares Bitcoin Trust (IBIT) has surpassed 700,000 BTC, valuing assets at nearly $75.6 billion, making it the third most profitable fund at BlackRock, ahead of long-established ETFs despite their larger assets. Recent strong inflows of $52.8 million outpace competitors. The ETF mainly at...
BlackRock's iShares Bitcoin Trust (IBIT) has surpassed the 700,000 BTC mark just a year and a half after its launch in January 2024, according to Glassnode data. This milestone values its assets under management at nearly $75.6 billion based on current CoinGecko prices. Remarkably, the Bitcoin ETF ranks as the third most profitable fund by revenue at BlackRock, the world's largest asset manager, surpassing long-established funds like the iShares Core S&P 500 ETF (IVV) and the iShares Russell 2000 ETF (IWM), both of which have been around for over two decades.
Despite these traditional funds managing higher total assets, their lower management fees have allowed the Bitcoin ETF to climb the profitability ranks rapidly. This recent surge aligns with strong inflows seen over the past two weeks, where BlackRock's IBIT attracted $52.8 million, significantly outpacing U.S.-listed Bitcoin ETF competitors like the Fidelity Wise Origin Bitcoin Fund (FBTC), which garnered $12.3 million.
Rajiv Sawhney, Head of International Portfolio Management at Wave Digital Assets International, shared insights on the broader implications of this milestone. He noted that the ETF’s investor base mainly consists of typical buy-and-hold investors, which helps reduce Bitcoin’s volatility compared to earlier market cycles. Observing continuous declines in both implied and realized volatility in recent months, Sawhney attributed ETF popularity, including BlackRock’s, as a contributing factor.
For traders who rely on market volatility to profit, such as market makers and arbitrage hedge funds, this reduced volatility presents challenges. Sawhney forecasts that this trend will persist through the summer, potentially shifting speculative interest towards cryptocurrency-focused equities like Japanese investment firm Metaplanet or stablecoin leader Circle.