BlackRock's Bitcoin Trust Surpasses $10 billion, Outperforming Gold ETFs in Record Time
Summary:
BlackRock's iShares Bitcoin Trust (IBIT) has hit $10 billion in assets under management (AUM) in just over seven weeks, a feat that took the first US gold-backed ETF more than two years to accomplish. This growth underscores the recent surge in demand for Bitcoin ETF versus gold, with some analysts suggesting that Bitcoin ETFs might surpass gold ETFs in AUM in less than two years.
The iShares Bitcoin Trust (IBIT) by BlackRock has amassed over $10 billion in managed assets in slightly over seven weeks, a milestone that the inaugural gold-backed ETF in the United States needed more than two years to attain. The Bitcoin ETF managed by BlackRock achieved this asset volume in around 39 trading days as of March 1 since the initiation of the trust. In comparison, the first gold ETF in the US, known as SPDR Gold Shares (GLD), took over two years to achieve a similar accomplishment after its inception in 2004, as reported by the finance blog Zero Hedge. Will Clemente, the co-founder of Reflexivity Research, highlighted on March 3 "The inflows into Bitcoin ETFs have vastly overshadowed those into gold. They're simply not comparable; gold inflows have been completely devastated." According to the data, the final days of February -- specifically the 26th, 27th, and 28th -- saw record levels of inflows into spot Bitcoin ETFs, surpassing $500 billion. Retired venture capitalist Jeff Kirdeikis compared BTC ETF and gold fund flows on March 4, asserting that since January, when Bitcoin products were launched, they have gathered nearly half the value of gold funds. Notwithstanding, Goldbug Peter Schiff was unperturbed, and on March 2 chided CNBC for being overly focused on Bitcoin and the emerging Bitcoin ETFs, ignoring the $43 surge in gold price and the new record high in the gold ETF GLD. Despite gold prices rallying to near-peak values of $2,081 per ounce on March 3, the precious mineral has appreciated by a measly 1% since the onset of the year. In contrast, the price of Bitcoin has inflated by a whopping 50% within the same timeframe. Bloomberg ETF analyst Eric Balchunas, at the end of February, stated that "Gold's hardship is Bitcoin ETFs' boon in the store of value contest," and proposed a "substantial possibility" of Bitcoin ETFs overtaking gold ETFs in managed assets within the next two years.
Published At
3/4/2024 8:58:25 AM
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