BTC Surges Above $42,000, BlackRock’s Spot Bitcoin ETF Reaches $2 Billion
Bitcoin (BTC) experienced a 5% jump on Friday, surpassing $42,000 for the first time in over a week. This surge in price has resulted in BlackRock’s spot bitcoin exchange-traded fund (ETF) reaching a valuation of over $2 billion. The fund currently holds 49,952 bitcoins. Grayscale’s spot bitcoin ETF, on the other hand, has approximately $20 billion in assets under management (AUM), but it is a conversion of its flagship fund GBTC.
Bloomberg Intelligence analyst James Seyffart stated that IBIT’s assets have surpassed $2 billion with the recent bitcoin price push and anticipated new flows. Since the introduction of spot bitcoin ETFs earlier this month, the total trading volume for these instruments has exceeded $22 billion.
Overall Volume Slowing as AUM Grows
The top three spot bitcoin ETFs in terms of trading volume are offered by Grayscale, BlackRock, and Fidelity. Fidelity has nearly $2 billion in AUM. Meanwhile, Ark Invest and Bitwise have both amassed over $500 million in assets under management. Although the initial day of trading saw $2.3 billion in buying and selling activity for the new products, the volume has been declining since then.
Hot Take: BlackRock’s Spot Bitcoin ETF Surpasses $2 Billion in Valuation
Bitcoin’s recent surge has propelled BlackRock’s spot bitcoin ETF to a valuation of over $2 billion, making it the first newly launched spot bitcoin ETF to achieve this milestone. With Grayscale’s spot bitcoin ETF already holding approximately $20 billion in assets under management, the popularity of these investment vehicles is evident. However, as overall trading volume slows down, it remains to be seen how these ETFs will continue to perform in the market. Nevertheless, the increasing interest and investment in spot bitcoin ETFs signal a growing acceptance and adoption of cryptocurrencies in the financial world.
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