Larry Fink, the CEO of BlackRock, has expressed his delight at the level of retail demand for the company’s spot Bitcoin ETF.
In a March 27 interview with Fox Business, Fink said that nothing has ever gained assets as fast as IBIT in the history of ETFs. Moreover, he also noted that the iShares Bitcoin Trust’s performance has exceeded his expectations over the first 11 trading weeks.
A Solid Start for IBIT
According to Farside Investors, IBIT has had a solid start to trading, attracting $13.5 billion in inflows in the first 11 weeks. It also with a daily high of $849 million on March 12. On average, IBIT attracts a little over $260 million in inflows per trading day.
Fink is pleased because the market now has higher liquidity and transparency. He stated that he would never have predicted such retail demand when they filed it. Moreover, it is also true that Larry Fink’s net worth will substantially increase after the success of the ETF as a whole. Additionally, when asked if IBIT would perform well, but not this well, Fink responded with a definite “yes.”
Larry Fink Bullish on Bitcoin
Fink is also very bullish on the long-term viability of Bitcoin. According to BitMEX Research, IBIT currently holds $17.1 billion in Bitcoin. It took only two months to reach the $10 billion mark, a milestone that took the first gold ETF two years to reach.
IBIT is one of the ETFs with the second highest amount of Bitcoin holdings, trailing only behind the Grayscale Bitcoin Trust among the currently approved ETFs. Moreover, Grayscale’s Bitcoin holdings, however, have continued to decrease, down from the 620k BTC it held before converting to a spot Bitcoin ETF.
BitMEX Co-Founder Says Blackrock Can Disrupt Bitcoin’s Actual Value
Arthur Hayes, co-founder of BitMEX, believes Bitcoin’s value comes from its movement. Vanguard and Blackrock own almost 2% of Bitcoins in circulation. Hayes warns that if Bitcoin ETF issuers like Vanguard and Blackrock acquire all the Bitcoin, it will lead to a decrease in transactions, miners losing motivation, and the network eventually becoming obsolete. Thus, Bitcoin will disappear.
The ETF Issuers and Their Holdings
The nine-spot Bitcoin ETF issuers (excluding Grayscale) now hold over $34.1 billion in Bitcoin, with IBIT, the Fidelity Wise Origin Bitcoin Fund (FBTC), and ARK 21Shares Bitcoin ETF (ARKB) leading inflows.
Some industry pundits predict that some spot Bitcoin ETF issuers may eventually shut down due to a lack of profits. According to Hector McNeil, the CEO and founder of white-label ETF provider HANetf, most current ETFs launched will never break even.
Smaller ETF issuers face difficulty in competing with bigger ones, says analyst Henry Jim. Additionally, they can’t survive if they match fees or don’t lower fees. Hashdex is the latest entrant in the competitive spot Bitcoin ETF market in the US.
Summary
IBIT had a strong start, attracting $13.5 billion in inflows in the first 11 weeks. According to Farside Investors, it is gaining assets faster than any other ETF in history. Some predict that spot Bitcoin ETF issuers may eventually shut down due to low profits.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
