The recently introduced BlackRock iShares Bitcoin ETF, traded as “IBIT,” has surpassed the iShares Silver Trust by reaching $10 billion in assets under management (AUM).
The increasing interest in Bitcoin has led to a decline in the iShares Silver Trust, which was launched in April 2006 as “SLV.” This trust, also managed by BlackRock, provides exposure to the daily movements of silver bullion prices, with approximately $9,787,865,530 in AUM, just below $10 billion.
According to Hector McNeil, co-CEO and co-founder of HANetf, a company specializing in marketing and distributing exchange-traded products, IBIT’s success is not surprising given the current enthusiasm and frenzy surrounding Bitcoin, particularly with the recent approvals of US ETFs.
As the world’s largest asset management firm with $10 trillion in assets as of December 31, BlackRock’s entry into Bitcoin with a Spot Bitcoin product has sparked another surge in the market. McNeil notes that competition and substantial marketing efforts, combined with the ongoing price momentum of Bitcoin and inflows of funds, are driving the increase in AUM for IBIT.
Reflecting on IBIT surpassing the iShares Silver Trust, McNeil observes that while precious metals have experienced significant price increases over the past year, they have not reached the same level of frenzy as Bitcoin.
Moreover, Laurent Kssis, a crypto expert on trading and ETFs at CEC Capital, highlights that BlackRock’s iShares ETF has replaced Grayscale’s GBTC as the primary trading vehicle for Bitcoin, indicating a shift in preference among institutional investors.
Despite the lengthy process, with the Winklevoss twins first filing for a Bitcoin ETF in July 2013, the market is finally witnessing significant advancements in the availability of crypto ETFs. Wall Street’s continued interest in crypto ETFs is evident, with reports of Morgan Stanley considering adding spot Bitcoin ETFs to its brokerage platform.
Overall, the surge in Bitcoin’s price reflects growing investor confidence and anticipation of potential monetary policy adjustments by the Federal Reserve.