u.today
The cryptocurrency market is witnessing a historic moment as BlackRock's iShares Bitcoin Trust (IBIT) is on the verge of surpassing a remarkable $10 billion in assets under management.
This milestone is especially significant considering the relatively short time span since its inception.
For comparison, it too took SPDR Gold Shares (GLD) more than two years to reach that milestone.
UPDATE: We have a new record inflow for the Cointucky Derby #Bitcoin ETFs! $IBIT took in a record $612 million on its own. On a net basis the group took in $673 million. This beats the day 1 record of $655 million. (still waiting on $BTCO)
— James Seyffart (@JSeyff) February 29, 2024
Also, IBIT crossed $9 billion in assets pic.twitter.com/1lWqFFyC5b
Record inflows
With Bitcoin prices soaring past $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 ticker IBIT, achieved this record-breaking figure on Tuesday, marking it the largest single-session haul to date.
The massive influx shows the increasing appeal of cryptocurrency ETFs to investors looking for direct exposure to the market without the complexity of managing actual digital currencies.
Bitcoin vs. gold
The burgeoning interest in Bitcoin ETFs is challenging the traditional stronghold of gold-backed ETFs.
Some investors are beginning to pivot their holdings, favoring the high-performing cryptocurrency funds.
This shift is not without its skeptics, however, with many analysts and fund managers maintaining a cautious stance.
The immediate growth of Bitcoin ETFs is undeniable, but experts suggest that they are unlikely to overshadow gold ETFs in the long term.
Nonetheless, the recent regulatory approval of spot Bitcoin ETFs in the U.S. has primed the ETF market for potential further gains, and the historical precedent set by the introduction of gold ETFs could suggest a similar trajectory for Bitcoin in the years to come.