BlackRock Bitcoin ETF Hits Massive Record, Dust Rivals

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As an experienced financial analyst, I find BlackRock’s IBIT performance in the spot Bitcoin ETF market truly impressive. The record-breaking number of corporate holders, which now stands at 414, is a testament to the growing confidence in Bitcoin as an asset class. This achievement is particularly noteworthy given that amassing such a large following within a short period is highly unusual for a new ETF.

As a crypto investor, I’ve noticed that since the SEC approved spot Bitcoin ETFs in January, BlackRock’s IBIT has consistently been at the forefront of the ETF market. The Bitcoin ETF under IBIT has experienced significant inflows and an unprecedented number of corporate investors recently.

BlackRock Shocks Spot Bitcoin ETF Market

According to Eric Balchunas, a senior ETF analyst at Bloomberg, BlackRock’s iShares Broad U.S. Aggregate Bond ETF (IBIT) reported an impressive 414 institutional holders in its initial 13F filing period. This number is quite remarkable, as it’s extremely rare for a newly launched ETF to attract such a large following with just 20 holders. In his view, this strong showing is a significant accomplishment.

According to a recent report from Coingape, over 400 corporate investors have expressed their support for IBIT through their substantial holdings. Notably, this figure underscores optimism towards Bitcoin’s role as an asset class. Bracebridge Capital, a Boston-based investment firm, is among the largest investors in $IBIT, with securities valued at approximately $100.6 million, based on their most recent SEC filing.

Some entities besides BlackRock that own units of its iShares BitCoin Trust (IBIT) include Rubric Capital, Wisconsin Investment Board, and New York-based Boothbay Fund Management. Boothbay Fund Management has equally invested in Bitcoin exchange-traded funds (ETFs) provided by Fidelity, Grayscale, and Bitwise.

The chart from Bloomberg Intelligence, as presented by Balchunas, indicates that IBIT is trailed closely by Fidelity’s FBTC. Over the past four months, this ETF has attracted over 200 investors. In contrast, Bitwise’s BITB and ARK 21Shares’ ARKB have around a hundred or fewer corporate backers each.

As a researcher studying the financial market trends, I was taken aback by the surprising number of reported holders, totaling 414, for $IBIT during its first 13F filing period. This figure far surpasses my expectations and sets a new record, even surpassing the milestone of 20 holders which is considered highly unusual in the early stages of an ETF’s life cycle. Let’s examine how Bitcoin ETFs, specifically those launched in January (labeled as the Class of 2024), compare to other ETFs in this regard.

— Eric Balchunas (@EricBalchunas) May 16, 2024

The restricted acceptance seen in recent Bitcoin SPOT ETF markets is mirrored by the significant transactions taking place. Yet, optimism returns as market circumstances gradually improve.

As an analyst, I’ve observed a notable increase in trading activity for Bitcoin ETFs among institutional investors recently. According to Santiment’s latest findings, the collective trading volume for the seven largest Bitcoin ETFs reached an impressive peak of $5.65 billion in a single day.

What To Expect for Ethereum ETF Approval

As Bitcoin ETFs gain popularity among corporations, the wider crypto community anxiously awaits the Securities and Exchange Commission’s (SEC) verdict on Ethereum ETF proposals. Many industry insiders and financial analysts have shared their perspectives on the likelihood of SEC approval for spot Ethereum ETFs. A sizeable number of these experts express pessimism.

As a crypto investor, I’ve been closely monitoring the developments regarding Ethereum ETFs. Lately, Bloomberg ETF Analyst James Seyffart raised concerns about the SEC’s increasing likelihood of rejecting these proposed funds. He attributes this to the regulator’s ongoing quest to classify Ethereum as a security, which seems to be creating a significant roadblock for numerous applications in the pipeline.

 

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2024-05-16 17:36