BlackRock iShares Bitcoin ETF Surpasses iShares Silver Trust with $10B AUM
The newly listed BlackRock iShares Bitcoin ETF, trading under the ticker symbol “IBIT,” has surpassed the iShares Silver Trust in terms of assets under management (AUM). The sudden surge in Bitcoin has pushed the iShares Silver Trust, another BlackRock-owned product, down the leaderboard. The SLV trust currently has approximately $9,787,865,530 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, states that it is not surprising that IBIT has overtaken the silver trust. He explains that the success of IBIT reflects how hot bitcoin is as an asset class due to the excitement and frenzy surrounding US ETF approvals. With tons of competition and significant marketing efforts, as long as the price momentum continues, AUM is expected to rise. This is attributed to both the rising price of Bitcoin and inflows into the fund.
IBIT Overtakes GBTC Trust
Grayscale’s Bitcoin product, trading under the ticker symbol “GBTC,” faced sluggish trading sessions recently with net outflows nearing $600 million. This marks the second-largest outflow since January 11, bringing total outflows since then to $8.4 billion. Laurent Kssis, a crypto expert on trading and ETFs at CEC Capital, states that it is great to witness iShares superseding GBTC as the main trading vehicle for Bitcoin. He criticizes GBTC for being substandard for institutional investors and notes that it was the first product to make it on the secondary market through a loophole in the rules.
Ten Years in the Making
The journey towards Bitcoin ETFs has been a long one. The Winklevoss twins first filed for a Bitcoin ETF back in July 2013, but it was repeatedly rejected. Kssis notes that it has taken ten years since the filing to reach this point, and there is still more potential for growth. Many trading platforms are still hesitant to allow their clients to trade ETFs, but this is an inevitable step that will introduce a second layer of investment opportunities.
Wall Street’s Appetite for Crypto ETFs
Morgan Stanley is currently considering adding spot Bitcoin ETFs to its brokerage platform and is conducting due diligence. This move by a major Wall Street firm reflects the growing interest in crypto ETFs among traditional financial institutions. Bitcoin’s price prediction remains a focal point for investors, with the cryptocurrency climbing to $63,800 during press time, reflecting growing investor confidence and anticipation of monetary policy adjustments by the Federal Reserve.
Hot Take: BlackRock Spot Bitcoin ETF AUM Hits $10B Overtaking the iShares Silver Trust
The newly listed BlackRock iShares Bitcoin ETF, known as IBIT, has surpassed the iShares Silver Trust in terms of assets under management (AUM). This achievement highlights the increasing popularity and excitement surrounding Bitcoin as an asset class. With fierce competition and significant marketing efforts, IBIT’s AUM is expected to continue rising as long as Bitcoin’s price momentum remains strong. This development also marks a significant milestone as IBIT replaces Grayscale’s GBTC as the main trading vehicle for Bitcoin. Despite facing challenges and rejections over the years, the rise of crypto ETFs on Wall Street is inevitable and will open up new investment opportunities. The interest from major financial institutions like Morgan Stanley further demonstrates the growing appetite for crypto ETFs in traditional markets. As Bitcoin’s price continues to climb and investor confidence grows, the future of crypto ETFs looks promising.
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