Crypto News- BlackRock’s spot Bitcoin exchange-traded fund (ETF) has achieved a significant milestone, crossing the $10 billion mark in total assets under management (AUM). Analyst Eric Balchunas from Bloomberg Intelligence predicts that reaching the next $10 billion milestone will be even smoother, largely due to Bitcoin’s remarkable price surge. With Bitcoin’s value soaring over 27% in the past week, surpassing $65,000, BlackRock’s holdings have seen substantial growth in dollar value.
The appreciation in Bitcoin’s price not only benefits investors but also boosts BlackRock’s earnings through ETF fees, typically calculated based on AUM. Currently, BlackRock stands to earn around 0.25% of the $10 billion AUM, amounting to approximately $25 million.
BlackRock’s Bitcoin ETF Surges Past 10 Billion Dollars in Record Time, Analysts Predict Smooth Sail for Next 10 Billion Dollars
On its debut, BlackRock’s ETF saw inflows of over 2,400 Bitcoin, valued at around $110 million. Today, those holdings are worth significantly more, reflecting the exponential growth of Bitcoin’s price.
Despite regulatory scrutiny, BlackRock’s ETF, IBIT, has emerged as the fastest ETF to reach $10 billion AUM, joining a select few in the “$10 billion club.” The recent approval of US spot Bitcoin ETFs by the Securities and Exchange Commission (SEC) has fueled optimism and contributed to Bitcoin’s rally, despite the regulatory stance of SEC Chair Gary Gensler, who has historically been critical of cryptocurrencies.
Analysts view the regulatory approvals as a positive sign, signaling broader acceptance and recognition of Bitcoin and the crypto industry as a whole. Rebecca Rettig, chief legal and policy officer at Polygon Labs, believes that these approvals demonstrate a growing seriousness towards Bitcoin and the crypto sector.
Leave a comment