The Rise of the BlackRock iShares Bitcoin ETF: Overtaking Silver and GBTC Trust

BlackRock's iShares Bitcoin ETF, trading as IBIT, has surpassed iShares Silver Trust with $10 billion in assets under management (AUM).

BlackRock’s Bitcoin ETF now has over $10 billion in assets under management, surpassing the iShares Silver Trust.

Last updated: March 4, 2024 02:48 EST | Reading time: 2 min

Tanzeel Akhtar Tanzeel Akhtar

Source: Midjourney Midjourney

The recently listed BlackRock iShares Bitcoin ETF, trading under the symbol “IBIT,” has surpassed the iShares Silver Trust, reaching $10 billion in assets under management (AUM). This milestone highlights the growing interest in Bitcoin and its impact on traditional investment vehicles.

The Bitcoin ETF Takeover

The iShares Silver Trust, launched in 2006 with the symbol “SLV,” has been overshadowed by the surge in popularity of Bitcoin. As another BlackRock-owned product, the silver trust provides exposure to the price movements of silver bullion. However, it currently stands at approximately $9.8 billion in AUM, just shy of $10 billion.

Bitcoin ETFs: Driven by Excitement and Frenzy

Hector McNeil, co-CEO and co-founder of HANetf, a firm that markets and distributes exchange-traded products, explains the success of IBIT by highlighting the excitement surrounding Bitcoin as an asset class, propelled by the recent U.S. ETF approvals. He notes that competition among ETFs and the massive marketing efforts are contributing factors to the rise in AUM.

As the world’s largest asset management firm with $10 trillion in assets, BlackRock entering the Bitcoin market with a new Spot Bitcoin product has triggered another bull run. McNeil predicts that as long as Bitcoin’s price momentum continues, AUM will continue to rise, driven by both price appreciation and inflows.

The Fall of GBTC Trust

In contrast, Grayscale’s Bitcoin product, trading under the symbol “GBTC,” faced sluggish trading with substantial net outflows nearing $600 million. Laurent Kssis, a crypto expert on trading and ETFs at CEC Capital, sees the takeover of GBTC by iShares as a positive development. He believes that the GBTC product was substandard for institutional investors and acknowledges the regulatory loopholes that allowed it to exist.

A Long Journey Towards Bitcoin ETFs

Reflecting on the progress made in the Bitcoin ETF space, Kssis points out that it has taken over 10 years since the Winklevoss twins first filed for a Bitcoin ETF. Despite it still being a relatively nascent market, he suggests that allowing ETF trading will unlock a second layer of investment opportunities.

Wall Street’s Appetite for Crypto ETFs

News emerged that Morgan Stanley is considering adding spot Bitcoin ETFs to its brokerage platform, conducting due diligence in the process. This indicates that Wall Street’s interest in cryptocurrencies and ETFs continues to grow. The price of Bitcoin currently sits at around $63,755, with investors closely monitoring the Federal Reserve’s monetary policy adjustments.

🔗 Reference Links:

  1. Bold BlackRock ad campaign says iShares Bitcoin ETF Progress
  2. GBTC sees $600m outflow in a day as Bitcoin ETFs set to record net inflows of $673m
  3. Bitcoin’s price prediction
  4. Morgan Stanley considering spot Bitcoin ETFs
  5. Follow Us on Google News

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