BlackRock Bitcoin ETF Hits New Milestone After Larry Fink’s Statement

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As a seasoned researcher with a keen eye for market trends, I find myself consistently intrigued by the meteoric rise of BlackRock’s Bitcoin ETF (IBIT). With over $23.5 billion in inflows since its inception, it’s clear that this product has struck a chord with investors worldwide.

The BlackRock Bitcoin ETF (IBIT) has been leading the way in attracting the largest amounts of investment in the U.S. market for Bitcoin ETFs. On Wednesday, IBIT saw another $300 million poured into it, bringing its total inflows since launch to over $23.5 billion. However, you might be wondering what’s causing such a surge in investments towards IBIT? This month, BlackRock’s CEO Larry Fink mentioned that “liquidity and transparency” are the main factors fueling Bitcoin’s growth.

BlackRock Bitcoin ETF Steals the Limelight

On Wednesday, October 23rd, the Bitcoin ETF saw an inflow of approximately $192 million, according to Farside Investors’ data. Notably, BlackRock’s IBIT accounted for over $300 million in inflows and acquired over 4,500 Bitcoins in a single day. This is equivalent to ten times the daily production of 450 Bitcoin.

BlackRock’s IBIT (Investment Management Business) is steadily pulling ahead of competitors in this sector, largely due to its early entry into Bitcoin. As head of the ETF division at BlackRock, Samara Cohen explained that they recognized a strong global interest in Bitcoin and chose to introduce this product earlier this year as a result.

At a recent Permissionless Conference in Utah, Cohen revealed that BlackRock has discovered an improved method for investing in Bitcoin. Specifically, they found it more advantageous through an Exchange Traded Fund (ETF) structure. As reported by CNBC, Cohen stated this during the conference. In less than a year since its launch, the combined market value of Bitcoin ETFs has surpassed $63 billion. Regarding the success of their own Bitcoin ETF (IBIT), President Nate Geraci of the ETF Store expressed his thoughts:

Over the last fortnight, small-scale investors, or ‘Degen retail,’ have invested approximately $2 billion into IBIT. This comes around ten months after its launch. In just ten months, investors have put $23.5 billion into a new ETF, which is absolutely astounding. Any ETF issuer would eagerly seize this opportunity in an instant.

13F filings show that large investors are buying 80% of the newly introduced Bitcoin products in the U.S., and it was reported by CNBC that 75% of these direct investors were first-time buyers who hadn’t previously owned an iShare, a well-known ETF provider. Cohen stated this. (Paraphrased to be more conversational and easy to understand)

BlackRock is currently focusing on enlightening ETF (Exchange Traded Fund) investors regarding Bitcoin and cryptocurrencies. As ETFs have been a significant factor in TradFi (Traditional Finance) markets, fostering greater accessibility, transparency, and growth, particularly following the 2008-2009 financial crisis, according to Cohen’s statement.

Larry Fink on BTC Adoption

At the start of this month, Larry Fink, the CEO of BlackRock, expressed that Bitcoin’s widespread use depends more on “liquidity and transparency” rather than regulation. During a discussion about how the forthcoming U.S. elections might affect Bitcoin, he stated:

It’s unclear to me whether either president could bring about significant change. In my opinion, the issue isn’t primarily about regulations; rather, it’s about ensuring liquidity and transparency.

In the ongoing U.S. elections, cryptocurrency donations have surpassed the $190 million mark, making cryptocurrencies a significant focus for both political parties – with both Donald Trump and Kamala Harris aiming to win over supporters who favor cryptocurrencies.

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2024-10-24 10:22