The cryptocurrency market is witnessing a historic moment as BlackRock’s iShares Bitcoin Trust (IBIT) is on the verge of surpassing the remarkable $10 billion in assets under management.
The cryptocurrency market is witnessing a historic moment as BlackRock’s iShares Bitcoin Trust (IBIT) is on the verge of surpassing the remarkable $10 billion in assets under management.
This milestone is especially significant considering the relatively short period of time since its inception.
For comparison, SPDR Gold Shares (GLD) also took more than two years to reach that milestone.
Record entries
With Bitcoin prices surpassing $60,000, BlackRock’s iShares Bitcoin Trust recorded a staggering $520 million in inflows in just one day, setting a new benchmark for cryptocurrency investment products.
The trust, known under the symbol IBIT, reached this record figure on Tuesday, marking the largest single session haul to date.
The massive influx shows the growing appeal of cryptocurrency ETFs for investors seeking direct market exposure without the complexity of managing actual digital currencies.
Bitcoin against gold
Growing interest in Bitcoin ETFs is challenging the traditional stronghold of gold-backed ETFs.
Some investors are starting to rotate their holdings, favoring high-yield cryptocurrency funds.
However, this change is not without its skeptics, as many analysts and fund managers maintain a cautious stance.
The immediate growth of Bitcoin ETFs is undeniable, but experts suggest they are unlikely to eclipse gold ETFs in the long term.
However, the recent regulatory approval of spot Bitcoin ETFs in the US has primed the ETF market for potential additional gains, and the historical precedent set by the introduction of gold ETFs could suggest a similar trajectory for Bitcoin in the years to come.
