BlackRock's Bitcoin ETF Reaches $1B Mark, Eyes Blockchain Beyond Bitcoin

By: Eva Baxter

BlackRock, the world's largest asset manager, has seen its Bitcoin ETF (IBIT) reach record inflows, surpassing a net of $1 billion and acquiring 25,067 Bitcoin just within four days of trading. Jay Jacobs, the U.S. Head of Thematics and Active Equity ETFs at BlackRock, noted that the iShares Bitcoin Trust ETF (IBIT) came about thanks to client demand for diversifying asset classes into an efficient ETF structure.

Jacobs outlined three primary advantages of the Bitcoin ETF: access, convenience, and quality. The convenience factor appeals to traditional investors seeking to diversify their portfolios with digital assets while also simplifying the complexities associated with direct crypto investments. Meanwhile, the broader finance industry is shifting its approach towards digital assets and blockchain technology.

Beyond Bitcoin, BlackRock recognizes the potential of blockchain technology for applications like supply chain management, increasing security, transparency, and efficiency. Jay Jacobs argued that blockchain achievements could enhance product safety, streamline payment processes, and promptly identify points of failure in manufacturing.

A competitive picture of the Bitcoin ETF market emerges when comparing BlackRock with Grayscale's Bitcoin Trust (GBTC). The latter has seen outflows in the region of $1.6 billion over the past four trading days, equating to roughly 37,209.30 BTC. If both entities continue at their current rates, BlackRock's Bitcoin holdings would surpass Grayscale's in approximately 37 days.