Key Takeaways
- BlackRock's spot bitcoin ETF, or IBIT, held more than $1 billion in bitcoin just five days after it began trading.
- IBIT is the second spot bitcoin ETF to achieve this milestone, with Grayscale Bitcoin Trust still dominating the market.
- Despite Grayscale's dominance, market data indicates funds are flowing out of their spot bitcoin ETF into alternatives from BlackRock, Fidelity, and others.
- Analysts say retail investor demand for spot bitcoin ETFs is modest, but that may be because not all brokerages offer access to the product.
The iShares Bitcoin Trust (IBIT) from BlackRock (BLK) now holds more than $1 billion worth of bitcoin, reaching the milestone just five days after the exchange-traded fund (ETF) began trading on Jan. 11.
IBIT's was a quick sprint to $1 billion, but not the fastest. SPDR Gold Trust (GLD) pulled in $1 billion in just three days back in 2004, according to Bloomberg Senior ETF Analyst Eric Balchunas.
What's Happening With Spot Bitcoin ETFs?
Although spot bitcoin ETFs were first listed on U.S. exchanges just last week, there are already some clear winners and losers emerging in the race for dominance in this niche market.
Despite significant outflows, Grayscale Bitcoin Trust (GBTC) still accounts for nearly 90% of the market, according to data shared by Bloomberg Analyst James Seyffart. That dominance is largely thanks to its previous existence as a trust before its conversion to an ETF.
BlackRock's IBIT and the Fidelity Wise Origin Bitcoin Fund (FBTC) have been the most prominent alternatives for investors exiting GBTC following their approval last week by the U.S. Securities and Exchange Commission (SEC).
BlackRock head of US iShares product, Rachel Aguirre told Bloomberg TV that the ETF is seeing flows from many different directions, including from retail investors and self-directed investors.
Who Is Buying Spot Bitcoin ETFs?
According to Vanda Research, retail investor appetite for spot bitcoin ETFs remains "modest." That could also be a function of access to these products. Some brokerages, such as Vanguard, are not offering the spot bitcoin ETFs to their clients while others are offering only a few among those available.
The spot bitcoin ETF market as a whole is expected to grow in the coming years, with some analysts predicting it to grow to $100 billion. In terms of new money coming into the bitcoin (BTCUSD) space, Morgan Creek Capital CEO Mark Yusko has said these new products could open the door for as much as $300 billion to enter the bitcoin market.
Do you have a news tip for Investopedia reporters? Please email us at
[email protected]
FAQs
BlackRock's IBIT is a spot bitcoin ETF that allows users to gain exposure to bitcoin's price movements without owning the cryptocurrency itself. A spot bitcoin ETF holds actual bitcoin as its underlying asset, providing a regulated way for users to participate in bitcoin's price movements.
How much bitcoin does BlackRock hold? ›
Holdings
| Ticker | Name | Units |
|---|
| BTC | BITCOIN | 357,550.21430 |
| USD | USD CASH | 526.23000 |
BlackRock's $20 Billion IBIT Fund Is World's Biggest Bitcoin (BTC) ETF - Bloomberg.
Is BlackRock's $20 billion ETF now the world's largest bitcoin fund? ›
BlackRock's iShares Bitcoin Trust has become the world's largest fund for the world's largest cryptocurrency, racking up nearly $20 billion in total assets since listing in the U.S. in January, Bloomberg News reported on Wednesday.
Is it a good idea to invest in Bitcoin ETF? ›
Investing in crypto ETFs is not without risk. The market is volatile, with prices fluctuating significantly in short periods.
Does BlackRock already own Bitcoin? ›
The asset manager's spot fund added just shy of 5,000 bitcoins Friday, bringing total holdings to 195,985 tokens. In less than two months of existence, the BlackRock iShares Bitcoin ETF (IBIT) has accumulated more bitcoin (BTC) than MicroStrategy (MSTR).
Who is the largest holder of bitcoin? ›
While the U.S. leads the pack with over $13 billion in seized Bitcoin, Bhutan's eco-friendly approach to mining makes it a standout player in the crypto space.
Did BlackRock lose 1.7 trillion dollars? ›
In the first half of this year, BlackRock jettisoned $1.7 trillion. While the firm quickly sought to pin the blame on 2022's market carnage, there's more to the picture—and it doesn't bode well for investors. Bloomberg is tracking the coronavirus pandemic and the progress of global vaccination efforts.
What is the best bitcoin ETF to buy? ›
7 Best Cryptocurrency ETFs to Buy
| ETF | Expense ratio |
|---|
| iShares Bitcoin Trust (ticker: IBIT) | 0.25% |
| ProShares Bitcoin Strategy ETF (BITO) | 0.95% |
| Roundhill Bitcoin Covered Call Strategy ETF (YBTC) | 0.95% |
| Global X Blockchain ETF (BKCH) | 0.50% |
3 more rowsJul 8, 2024
The largest holder in this category is BlackRock's iShares Bitcoin Trust, which has approximately 347,767 BTC under management. In total, ETFs, public and private companies own almost 1,481,218 BTC, more than 7% of the total supply.
A spot bitcoin ETF is an exchange-traded fund that tracks the spot, or current price of bitcoin. By holding an equivalent amount of bitcoin to back every share of the ETF that is sold, the fund is actually backed by bitcoin itself.
How much is the Bitcoin ETF worth? ›
About Bitcoin ETF
Bitcoin ETF's price today is US$0.0003435, with a 24-hour trading volume of $12. ETF is -0.19% in the last 24 hours.
Is BlackRock the biggest fund in the world? ›
BlackRock, Inc., founded in 1988, has grown to become the world's largest asset manager. Its journey is a testament to its strategic foresight, innovative approach, and ability to adapt to the evolving financial landscape.
What is BlackRock's largest holding? ›
Top 10 Holdings (83.85% of Total Assets)
- Microsoft Corporation 33.64%
- Berkshire Hathaway Inc. 11.94%
- General Dynamics Corporation 8.58%
- JPMorgan Chase & Co. 6.56%
- American Express Company 5.09%
- Visa Inc. 4.50%
- Johnson & Johnson 3.65%
- AstraZeneca PLC 3.54%
Blackrock's IBIT Is Now the Largest Bitcoin ETF
GBTC is the oldest fund, with bitcoin investments that converted to an ETF when the U.S. Securities and Exchange Commission allowed spot bitcoin ETFs earlier this year. At that time, GBTC's assets surpassed $24 billion.
What is a spot bitcoin ETF? ›
Spot Bitcoin ETFs are financial instruments that track Bitcoin's price by holding the actual cryptocurrency in reserve and backing each share of the ETF with real Bitcoin. These ETFs provide investors with direct exposure to Bitcoin's price movements without the need to buy, store, or manage Bitcoin themselves.
How risky is IBIT? ›
Volatility and Risk
This volatility, coupled with the inherent risks of the cryptocurrency market, makes IBIT a high-risk investment.
When did BlackRock launch bitcoin ETF? ›
The iShares Bitcoin ETF (IBIT) reached the milestone just seven weeks after launching on 11 January, on the heels of a week of record trading and inflows for the group of 10 trading spot bitcoin ETFs, according to Bloomberg Intelligence data.
What is the symbol for bitcoin ETF? ›
ETFs: ETF Database Realtime Ratings
| Symbol Symbol | ETF Name ETF Name | Inception Inception |
|---|
| ARKB | ARK 21Shares Bitcoin ETF | 2024-01-11 |
| BITB | Bitwise Bitcoin ETF Trust | 2024-01-11 |
| BITO | ProShares Bitcoin Strategy ETF | 2021-10-19 |
| BITX | 2x Bitcoin Strategy ETF | 2023-06-27 |
4 more rows