By Hassan Mehmood (Saudi Arabia)
BlackRock entered the Bitcoin spot ETF race last year inciting a race among asset managers to accelerate their applications for the same investment funds. SEC finally approved 11 Bitcoin spot ETFs on 10th January 2024. BlackRock listed iShares spot Bitcoin ETF shares at NASDAQ.
Last week, a Bloomberg report revealed that iShares was the first spot ETF listing for Bitcoin that crossed $1 billion. The iShares opened at $27.50 on 11th January, 2024 on Thursday at the NASDAQ exchange.
The asset management firm has now reached a new milestone of printing $2 billion in AUM for the Bitcoin spot ETF Trust (IBIT). The milestone led to breaking the $42K resistance for Bitcoin prices in the spot market. The resistance level was breached for the first time in 7 days.
On account of the price appreciation, the position of iShares has strengthened. Bloomberg analyst James Seyffart posted 10th-day update for Bitcoin spot ETF shares. He opined that the trading volume and net flows remained pacified with the projection of overall positive $774 million.
BlackRock, Fidelity, VanEck and Bitwise to Lead the Bitcoin ETF Market
Bloomberg’s ETF analyst has used AUM or asset under management as the main metric to measure the performance of Bitcoin spot ETF. AUM defines the total value of cryptocurrency assets that a company stores for clients allowing them to seek indirect exposure in Bitcoin.
Also read:The AUM projections are a direct indication of the growing interest in iShares demand among investors. As BlackRock leads the market, Fidelity is ranked as the immediate second in terms of the same metric.
Origin Bitcoin Fund
Data projections indicate that Origin Bitcoin Fund (FBTC) is now valued at $1.8 billion in net flows since its listing. It is important to mention that the top asset management firm has set the trading fee at 0.12% for the first year or until it completes the $5 billion AUM target. When either of these thresholds is completed, the fee will be fairing at 0.25%.
Various asset management firms have also opted for keeping a low fee for ETF investors. Ark Invest’s 21Shares ARKB Trust charges 0.21%, VanEck’s HODL, and Bitwise’s BITB trading overhead is 0.20%.
Spot Bitcoin ETFs Attract New Investors
With the introduction of 11 behemoths in the Bitcoin spot ETF sector, there is a visible rise in capital inflows. The AUM readings for the US-based spot ETF listings are impressive. For context, BITCC, the first Bitcoin spot ETF listed in Canada by Purpose Investment in February 2021 crossed the $1.009 billion mark in August 2021 as per Ycharts projections.
VanEck, one of the asset management firms that listed a Bitcoin spot ETF on 11th January, introduced Bitcoin to a new generation of investors by running TV ads. However, BlackRock posted a two-minute introductory video featuring its top executive sharing Bitcoin value and information about gaining exposure in the new ETF listing.
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