BlackRock’s iShares Bitcoin ETF, trading under the ticker symbol “IBIT,” has surpassed the iShares Silver Trust, reaching a staggering $10 billion in assets under management (AUM).
The surge in interest in Bitcoin has propelled the iShares Silver Trust, launched in April 2006 and trading under the ticker symbol “SLV,” down the ranks. The silver trust, another BlackRock-owned product, offers exposure to the day-to-day movement of the silver bullion price, boasting approximately $9,787,865,530 AUM, just shy of the $10 billion mark.
Driven by enthusiasm and frenzy surrounding the approval of US ETFs, Bitcoin ETFs have experienced unprecedented growth. Hector McNeil, co-CEO and co-founder of HANetf, a firm specializing in exchange-traded products, notes that IBIT’s success mirrors the soaring popularity of Bitcoin as an asset class.
With its $10 trillion in assets as of December 31, BlackRock, a global powerhouse in asset management, entering the Bitcoin arena with a new Spot Bitcoin product has ignited yet another bull run in the market. McNeil attributes the rising AUM of IBIT to the relentless Bitcoin price momentum and substantial inflows, coupled with intense competition and extensive marketing efforts.
Commenting on IBIT overtaking the iShares Silver Trust in terms of AUM, McNeil points out that while precious metals have seen a good price run over the past year, it pales in comparison to the frenzy surrounding Bitcoin.
Meanwhile, Grayscale’s Bitcoin product, GBTC, faced a sluggish trading session with net outflows nearing $600 million. This development marks the second-largest outflow since January 11, with total outflows since then amounting to $8,406.3 million.
Laurent Kssis, a crypto expert on trading and ETFs at CEC Capital, views BlackRock’s iShares as a significant replacement for GBTC in the Bitcoin trading landscape, noting that GBTC’s product was considered substandard for institutional investors.
Reflecting on the journey of Bitcoin ETFs, Kssis notes the Winklevoss twins’ initial filing for a Bitcoin ETF in July 2013, which faced repeated rejections. Despite the obstacles, Kssis emphasizes that the industry has made significant strides over the past decade, paving the way for a new layer of investment opportunities.
Wall Street’s appetite for crypto ETFs remains strong, with reports emerging that Morgan Stanley is considering adding spot Bitcoin ETFs to its brokerage platform, currently undergoing due diligence.
As Bitcoin continues its upward trajectory, trading at around $63,755, investor confidence grows, with a keen eye on anticipated monetary policy adjustments by the Federal Reserve.
