BlackRock ETF has exceeded $1 billion
On Thursday, BlackRock's spot bitcoin ETF (IBIT) surpassed the $1 billion mark, becoming the first ETF to surpass $1 billion among bitcoin ETFs that debuted last week. Investors deposited $371 million into BlackRock's spot bitcoin ETF on Wednesday, according to data aggregated by the media.
Fidelity Investments is a close second to BlackRock. The company's spot bitcoin ETF (FBTC) saw $358 million in inflows on Wednesday, the highest single-day inflow since the fund launched a week ago. The Bitcoin ETF has a total size of about $880 million.
The U.S. Securities and Exchange Commission (SEC) approved last Wednesday that the first batch of spot bitcoins began trading last Thursday, January 11. Last week, a total of 11 Bitcoin ETFs were listed, nine of which were brand new. BlackRock and Fidelity's Bitcoin ETFs were the biggest winners among the nine newly listed ETFs, with their combined inflows of 68%.
Industry insiders commented that it is not surprising that BlackRock is the winner, they are well-resourced. It also shows how seriously they attach this asset class. There are so many opportunities not to be missed.
The data shows that a large amount of capital inflow from BlackRock and Fidelity Investment comes from Grayscale Investment's Bitcoin ETF (GBTC). Grayscale's Bitcoin Trust was founded in 2013, and when it turned into an ETF, it managed more than $28 billion in assets, but when other issuers' Bitcoin ETFs were approved, the outflow from Grayscale amounted to about $1.6 billion.
It is worth mentioning here that Grayscale's Bitcoin ETF management fee is as high as 1.5%. In comparison, BlackRock and Fidelity have a fraction of their management fees, and even then, the fund management fees of these two giants are still not the lowest. Franklin Templeton currently has the lowest management fee among Bitcoin ETFs, with a management fee of only 0.19%, but its Bitcoin ETF receives less than 2% of the inflows. Industry insiders believe that BlackRock and Fidelity's institutional and retail distribution networks could allow the two industry giants to gain more market share in the future.
For the company's bitcoin spot ETF, Rachel Aguirre, head of product at BlackRock's iShares in the United States, said that BlackRock's products have attracted the attention of retail investors from the beginning, and the company is also working to attract new investors who are not familiar with the asset class of bitcoin. "We're seeing inflows coming from a number of different directions. The interest in spot Bitcoin ETFs is coming from both retail markets and discretionary investors, some of whom have invested very early on, and we're looking at investors who are just starting out on this new asset class, and we're very excited about that. ”
Since the listing of the Bitcoin ETF, the trend has become more and more "selling facts". Last Thursday, Bitcoin briefly rose above $49,000 intraday, the highest since December 2021, and rose about 6.8% on the day. However, the enthusiasm soon subsided, and Bitcoin turned lower during the day, returning to below $46,000. In the case of BlackRock's IBIT, the ETF closed down every trading day after Bitcoin was listed. On Thursday, Bitcoin fell to $41,700 intraday.
The influencer, who has more than 900,000 followers on platform X (formerly Twitter), said that he opened a short position of $300,000 on Thursday, saying that this is the only way to increase bitcoin in the future.
