iShares Bitcoin Trust (IBIT), offered by BlackRock, has formally become the quickest exchange-traded fund ever. Its assets are under management at $80 billion.
This milestone is reached after only 374 days and is an indication of how fast institutional interest in Bitcoins has grown through the use of financial products regulated as investments.
IBIT still has a great appeal to capital investors. In one single day, which was on July 10, it registered a net inflow of $448 million. On the same day, the trading volume exceeded 5.39 billion dollars. The ETF is offered in each share, which is currently worth about 64.50 dollars, and its total net asset value is 80.11 billion dollars. The fund currently holds over 700,000 BTC, which is equivalent to approximately 3.55 percent of all Bitcoins circulating.
Outpaces Traditional and Gold ETFs
The growth pace of IBIT has beaten that of other most successful traditional ETFs. Comparatively, it required a longer period of 2,034 days and 2,089 days of iShares Core MSCI EAFE (IEFA) and iShares Core MSCI Emerging Markets (IEMG), respectively, to reach a market share of 80 billion. It achieved the same standard in less than 15 months.
Source: Eric Balchunas X
Analyst Eric Balchunas at Bloomberg described it as historic in nature since no other ETF has achieved such a level of growth within this short time frame. The total AUM of United States-based Bitcoin ETFs has currently exceeded 140 billion. IBIT contributes over 55 percent of this figure.
Bitcoin also offers better asset collection speeds than gold-backed ETFs. BlackRock’s product achieved a value of $70 billion within five times the period it took gold ETFs to attain the same price. That means that there has been a change in perception, and investors are beginning to see Bitcoin as a store of value, just like gold.
A Growing Position in Institutional Portfolios
ETFs are regulated and secure vehicles for Bitcoin exposure, which is of particular interest to institutional investors. Thus, BlackRock ETF is quite attractive. In comparison to purchasing Bitcoins directly, IBIT will enable access to Bitcoins without having to deal with wallets or manage the ownership of private keys.
Demand remains high among pension funds, family offices, and wealth managers. This tendency indicates that Bitcoin is becoming an established permanent participant in the classic financial system.
Rivaling Satoshi’s Holdings
IBIT has acquired such a large amount of Bitcoin that hardly any other organization owns as much as IBIT does. With more than 700,000 BTC, the fund could outgrow Satoshi Nakamoto’s approximated 1 million BTC by 2026. As the 21st largest ETF in the world now, IBIT redefined the traditional concept of crypto-related investment vehicles.
The post BlackRock Bitcoin ETF Sets Record as Fastest Ever to Reach \B in Assets first appeared on Coinfea.
