BlackRock’s Bitcoin ETF Surpasses $2 Billion in Assets

BlackRock leveraging its market reputation targets a broad audience with a video explaining Bitcoin’s value proposition.

The Bitcoin exchange-traded fund (ETF) managed by BlackRock achieved $2 billion in assets under management (AUM) on January 26, just two weeks after debuting on the Nasdaq.

James Seyffart, an analyst at Bloomberg made public data indicating that the fund’s market capitalization has reached $2.11 billion. Bitcoin’s price performance during the day has contributed to this.

After a sell-off that occurred after the debut of exchange-traded funds (ETFs) on January 11, the price of the cryptocurrency has finally surpassed $42,000 for the first time in nearly seven working days.

The term “assets under management” is used to convey the total market value of all the financial assets held by a fund on behalf of its clients. Currently, the iShares Bitcoin Trust (IBIT) offered by BlackRock leads the competition for investors’ capital.

The Wise Origin Bitcoin Fund (FBTC) offered by Fidelity which has received $1.8 billion in inflows over the past ten days, trails just slightly behind. To appeal to a wider audience with its cryptocurrency-based product, BlackRock is capitalizing on its market reputation as the largest asset manager in the world.

BlackRock chose to communicate with baby boomers using a two-minute video featuring one of its executives outlining Bitcoin’s value proposition and how investors can receive exposure to its new exchange-traded fund (ETF).

Asset managers such as VanEck targeted early adopters and the cryptocurrency community with television advertisements for Bitcoin ETFs in contrast to BlackRock’s approach.

There is a possibility that the annual fees that issuers charge also add to the attractiveness of capital. BlackRock has decided to boost the charge for the iShare ETF to 0.25% after initially setting it at 0.12% for the first year or until the first $5 billion in assets under management.

For the first year, the price will remain at 0.12%. Several other issuers also provide competitive fees, such as ARK Invest, which charges 0.21%, VanEck which lists a price of 0.25%, and Bitwise which charges 0.20%.

Fees on exchange-traded funds (ETFs) are deducted from the performance of the ETF, resulting in a decreasing return for investors. In the first year, Seyffart forecasts that bitcoin exchange-traded funds will amass ten billion dollars in capital.