As a seasoned investor with a keen eye for emerging trends and a knack for spotting potential, I’ve witnessed my fair share of market transformations. The recent surge in US-listed Bitcoin ETFs, particularly BlackRock’s iShares Bitcoin Trust, has caught my attention.
This week, there have been substantial investments in Bitcoin ETFs listed on U.S. stock exchanges. On October 16 alone, institutional investors contributed approximately $459 million to these cryptocurrency investment funds, marking the fourth consecutive day of increased investments.
In a remarkable turn of events, it was BlackRock’s iShares Bitcoin Trust (IBIT) that spearheaded the investment surge, amassing approximately $393 million in a single day. According to SoSoValue, IBIT has been a magnet for institutional investments, with a total inflow of around $22.46 billion over the past four days.
BlackRock Now Controls 2% of Bitcoin Market Share
Beginning in January 2024 after undergoing a thorough examination by the US Securities and Exchange Commission (SEC), BlackRock’s IBIT has experienced a substantial loss of approximately $25.83 billion in net assets. Currently, this product represents around 2% of the entire Bitcoin market, which is worth approximately $1.33 trillion.
In the United States, other Bitcoin ETFs like Fidelity’s FBTC and ARK Invest’s ARKB experienced minor increases, with $14.81 million flowing into FBTC and $11.51 million entering ARKB. On the other hand, Grayscale’s GBTC fund remained steady, showing no signs of either positive or negative transactions.
BlackRock, a major player, has consistently seen inflows into Bitcoin Exchange Traded Funds (ETFs). Recently, the company’s CEO, Larry Fink, has changed his view on Bitcoin, now acknowledging it as a valid asset class.
As an analyst, I shared during our Q3 2024 earnings call that the leading cryptocurrency stands alone in its category, drawing comparisons to traditional commodities like gold.
He stated that we consider Bitcoin as a unique investment category, serving as an alternative to traditional commodities such as gold.
Previously known as a fierce critic of Bitcoin, branding it as a means for illicit activities like money laundering, Fink has now undergone a notable change of heart. In a recent conversation with CNBC, Fink openly acknowledged that his earlier skepticism about the potential of digital currency was misplaced.
A Change of Heart
On more than one occasion, Bitcoin has successfully silenced its skeptics and transformed them into fervent advocates. Notable figures such as former U.S. President Donald Trump, now campaigning against Kamala Harris for a second term in office, were initially critical of Bitcoin.
Trump on several instances deemed Bitcoin, the leading crypto asset, as having no value due to its unpredictable fluctuations. Yet, circumstances have shifted, and the ex-President is now among numerous advocates of Bitcoin. His 2024 presidential campaign even entertains contributions in Bitcoin and other digital currencies.
Trump’s family is getting involved with cryptocurrencies too, as Melania Trump has started working with Non-Fungible Tokens (NFTs). On several instances, she has released NFTs that sell out in just a day.
Beyond just the BlackRock CEO and Trump, figures such as Mark Cuban – an influential American entrepreneur and political figure – have undergone a change of heart regarding a subject they once dismissed. Previously, Cuban asserted that Bitcoin lacks inherent value; however, today, this billionaire has amassed a significant collection of the same asset he once criticized.
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2024-10-17 12:28