BlackRock’s New Bitcoin ETF Secures 25K BTC Holdings – Is Institutional FOMO Underway?
BlackRock’s new spot Bitcoin ETF IBIT has attracted considerable interest from both retail and institutional investors since launching last week. The fund has already amassed over 25,000 BTC, representing more than $1 billion in holdings at current prices.
BlackRock iShares U.S. product head Rachel Aguirre told Bloomberg that IBIT has seen inflows from diverse groups of investors looking to gain exposure to bitcoin on day one of the ETF’s trading.
“We’re seeing interest from retail, self-directed investors, and some who were ready to invest day one,” Aguirre said.
BlackRock Head of US iShares Product Rachel Aguirre says that the influx of flows into IBIT are coming from both retail and new investors https://t.co/ZcijTXN2uz pic.twitter.com/ktiE4yIyXX
— Bloomberg TV (@BloombergTV) January 17, 2024
While Aguirre declined to comment on potential model portfolio allocations to Bitcoin, she expressed BlackRock’s excitement regarding investors exploring this new crypto asset class. She emphasized the company’s focus on educating clients to support their investing journey in this area.
In just four days of trading, IBIT generated over $1.28 billion in volume, accounting for nearly 11% of total trading across all U.S. spot bitcoin ETFs. With over 25,000 BTC holdings, it ranks as the second largest spot bitcoin ETF behind Grayscale’s Bitcoin Trust, which holds nearly 620,000 BTC.
The high amount of trading activity points to a growing institutional appetite for crypto exposure through regulated investment vehicles. It also indicates that both retail and institutional investors are looking to diversify portfolios with digital asset investments.
Another way to put the bitcoin ETF flows in ETF context (besides showing their #s relative to
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