BlackRock CEO Bullish on Bitcoin as ETF Hits $17B

BlackRock CEO Bullish on Bitcoin as ETF Hits $17B

BlackRock CEO Bullish on Bitcoin as ETF Hits $17B

BlackRock CEO Larry Fink is optimistic about Bitcoin’s future, citing the rapid growth and impressive performance of the iShares Bitcoin Trust.

As a result of the performance of his company’s spot Bitcoin (BTC) exchange-traded fund (ETF), BlackRock CEO Larry Fink has expressed his “very bullish” sentiment regarding the long-term viability of Bitcoin.

BlackRock CEO Surprised by IBIT’s Record Growth

BlackRock CEO Larry Fink has also stated that he is “pleasantly surprised” by the performance of the ETF. IBIT is the exchange-traded fund (ETF) that has experienced the most rapid growth in the entire history of ETFs.

Throughout the history of exchange-traded funds (ETFs), nothing has gained assets as quickly as IBIT, according to Larry Fink, whom Fox Business interviewed on March 27.

BlackRock CEO stated that the success of the iShares Bitcoin Trust (IBIT) has even “surprised” him due to how well it has performed over the first eleven trading weeks.

According to Farside Investors, IBIT has gotten off to a solid start in trading, with flows totaling $13.5 billion in the first 11 weeks of trade. The company reached a daily high of $849 million (as of March 12).

IBIT receives a bit more than $260 million in inflows on a daily trading basis on average. To my joyful surprise, we are currently establishing a market that is more transparent and has more liquidity.

According to BlackRock CEO, “I would never have predicted that we were going to see this kind of retail demand before we brought it to the public’s attention. “Regarding whether IBIT would “do good, but not this good,” Fink stated, “Yes.”

The chief executive officer of BlackRock continued, “I am very bullish on the long-term viability of Bitcoin.” However, according to BitMEX Research, IBIT currently possesses $17.1 billion in Bitcoin. It took only two months for IBIT to achieve the $10 billion barrier, a milestone that the first gold ETF took two years to reach.

With a total of $23.6 billion in Bitcoin holdings, the IBIT is the only exchange-traded fund (ETF) that even comes close to matching the assets of the Grayscale Bitcoin Trust.

However, Grayscale’s Bitcoin holdings have continued to decrease, and they are currently at 620,000 BTC, which is half of what they were before they converted to a spot Bitcoin ETF.

BlackRock CEO Bullish on Bitcoin as ETF Hits $17B
Source: BitMEX Research

The nine Bitcoin exchange-traded fund (ETF) issuers currently hold about $34.1 billion worth of Bitcoin, with IBIT, the Fidelity Wise Origin Bitcoin Fund (FBTC)and ARK 21Shares Bitcoin ETF (ARKB) receiving the most inflows.

This list does not include Grayscale. While this is going on, there are industry experts who believe that some spot Bitcoin ETF providers might eventually go out of business since they are not making enough money.

In a recent interview, Hector McNeil, the co-CEO and creator of white-label ETF provider HANetf, stated that the majority of the currently released exchange-traded funds (ETFs) would never even break even because the charges will only work if they eventually reach billions of assets under management, which they will not.

Several exchange-traded fund (ETF) issuers have reduced their fees to compete with some more prominent firms.However, according to Henry Jim, an analyst with Bloomberg ETFs, these smaller issuers “face an uphill battle in entering this turf war of giants.”

“If they match fees, they won’t have enough revenue to survive, and if they don’t lower fees, they won’t be able to gather enough critical mass assets to survive.”

On March 27, the asset management company Hashdex received approval for its spot Bitcoin exchange-traded fund (ETF), making it the eleventh and most recent company to introduce itself to the highly competitive spot Bitcoin ETF market in the United States. 

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