Last updated:
December 4, 2024 13:24 GMT+3
Author
Jimmy Akey
Author
Jimmy Akey
Post
Last updated:
December 4, 2024 13:24 GMT+3
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BlackRock’s Bitcoin ETF has achieved a new milestone with Bitcoin Assets Under Management (AUM) exceeding 500,000 BTC, reflecting significant institutional demand. What lies ahead for these investment vehicles as these Bitcoin ETFs grow in popularity?
BlackRock’s Bitcoin exchange-traded fund (IBIT) achieved a remarkable achievement last week by exceeding 500,000 BTC assets under management with a total value of $48 billion. This achievement comes within less than a year of the fund’s launch on January 11. /January 2024.
Origins Bitcoin ETF of BlackRock Exceeding 500,000 currencies BTC
A report recently published by the K33 website stated that investments worth $338.3 million had been received into the IBIT Fund on November 29, raising its total balance to 500,380 BTC, representing 2.38% of the total Bitcoin supply, in confirmation of the increasing institutional demand for these investment products.
Regarding this, K33 head of research Vetle Lunde described this achievement as “a new important milestone one year after its launch.”
Lundy noted that the percentage of institutions’ contributions to the fund’s shares during the third quarter of 2024 amounted to 24%, and added: “We expect that these investment tools will become essential in the strategy of diversifying the assets of investment portfolios, as major funds are moving towards allocating 1-3% of their capital to investment.” In BTC due to the latter’s tendency to improve risk-adjusted returns.”
BlackRock’s success is a reflection of the growing demand for investing in Bitcoin ETFs, as IBIT has become the third strongest exchange-traded fund (ETF) in the United States in terms of investments received during the year, coming behind major providers of these products such as Invesco’s QQQ fund.
Wider impact on crypto markets
The success of Bitcoin ETFs has played an important role in catalyzing Bitcoin’s strong start this year, and the price of Bitcoin (BTC) currently stands at $94,762, up 38% since March when Larry Fink, CEO of BlackRock, described the IBIT Fund as… “Fastest growing ETF since launch of these ETF products.”
In an interview with Fox Business, Fink expressed his shock at the pace of Bitcoin’s price increases, and stated in October that its growth was not linked to political events, including the electoral race between Trump and Harris. He also described Bitcoin – during the company’s third-quarter profitability report – as “ “It represents an asset class in its own right” that transcends the effects of global politics.
However, Fink’s claim has been proven wrong – to a large extent – thanks to the significant impact of the US elections on Bitcoin’s recent developments. Bitcoin ETFs within the United States recorded investments worth $353.6 million – as of November 29 – bringing the total investments received since their launch to 31.2 million. billion dollars, and November alone witnessed the receipt of investments worth $6.6 billion, confirming the great interest of investors in investing in it.
While market observers believe that this rise was a primary driver in pushing the price of Bitcoin towards reaching unprecedented levels, especially since ETFs facilitate traditional investors’ exposure to the sector leader, the total Bitcoin assets under the management of Bitcoin ETF providers in the United States amount to 1.1 million BTC, which is equivalent to What Bitcoin blockchain founder Satoshi Nakamoto has in his possession, with his balances estimated according to mining patterns in his early days. Between 600,000 and 1.5 million BTC, but the most acceptable number is 1.1 million BTC.
Ethereum funds traded on US exchanges (Ethereum ETFs) have also witnessed continuous net investments recently, despite the dominance of Bitcoin ETFs in transactions, topped by BlackRock’s ETHA fund, recording investments worth $55.9 million, which raised the total value of investments received into all ETH. ETFs reached $1.1 billion in November.
It is recently reported that experts expect Bitcoin ETFs to continue to grow, and Lundy sees the possibility of Bitcoin assets under the management of the IBIT Fund exceeding the one million BTC mark during 2025, supported by the rise in the value of Bitcoin and its advantages related to diversifying the assets of investment portfolios.
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