BlackRock's Bitcoin ETF Surges to $2 Billion in Just Two Weeks Post Nasdaq Debut
Summary:
BlackRock's Bitcoin exchange-traded fund (ETF) marked a significant milestone by reaching $2 billion in assets under management just two weeks after its debut on Nasdaq. The ETF's total market capitalization surged thanks to Bitcoin's remarkable intraday performance. Leveraging its reputation as the world's largest asset manager, BlackRock stands ahead in attracting investors' capital, and plans to increase its iShare ETF's fee to 0.25% after hitting $5 billion in management. Other issuers, such as ARK Invest, VanEck, and Bitwise also offer competitive fees. Analyst James Seyffart anticipates Bitcoin ETFs attracting $10 billion in investments in the first year.
In just two weeks following its Nasdaq debut, BlackRock's Bitcoin exchange-traded fund (ETF) demonstrated an impressive performance by achieving $2 billion in assets under management (AUM) as of January 26. The remarkable climb to a market capitalization amounting to $2.11 billion was spurred on by Bitcoin's stellar intraday performance, as reported by Bloomberg analyst James Seyffart. Notably, the massive leap followed Bitcoin's price breaking the $42,000 mark for the first time in nearly a week - a recovery from a recent drop after ETFs were launched on January 11. The term AUM is a financial index that represents the total market worth of the assets a fund manages on behalf of its clients. Consequently, BlackRock's iShares Bitcoin Trust (IBIT) is currently at the vanguard of funds attracting investors' money, slightly surpassing Fidelity’s Wise Origin Bitcoin Fund (FBTC), which accrued $1.8 billion over the last ten days. The leading worldwide asset manager BlackRock capitalizes on its market prestige to draw a more diverse range of start-ups towards its crypto-centric product. Unlike asset managing firms like VanEck that concentrate on early enthusiasts and the crypto sector with Bitcoin ETF TV ads, BlackRock opted to reach out to the baby boomer demographic with a two-minute video featuring a company executive explaining the perks of Bitcoin and how investors can benefit from the newly launched ETF. Issuers' yearly fees might also lure capital. Initial fees for BlackRock's iShare ETF were set at 0.12% for the inaugural 12 months or until AUM hits the $5 billion mark, after which an increase to 0.25% is planned. Other issuers also offer reasonable fees - ARK Invest at 0.21%, VanEck at 0.25%, and Bitwise at 0.20%. These fees are not charged directly to the investors, but are deducted from the ETF's performance, thereby diminishing the return for investors. Seyffart predicts that in the first year alone, Bitcoin ETFs could accumulate $10 billion in capital.
Published At
1/26/2024 11:30:02 PM
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