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Bitcoin's price gains push BlackRock's ETF above $2 billion in assets under management

Bitcoin's price gains push BlackRock's ETF above $2 billion in assets under management

The BlockThe Block2024/01/26 19:25
By:RT Watson

Bitcoin’s rising price on Friday is spurring BlackRock’s spot bitcoin ETF to become the first of the new products to reach $2 billion in assets under management.Grayscale’s converted fund has about $20 billion in AUM.

Bitcoin's price gains push BlackRock's ETF above $2 billion in assets under management image 0

As the price of bitcoin rose on Friday, BlackRock's spot bitcoin ETF is positioned to reach the milestone of having $2 billion in assets under management with the firm's newly launched product continuing to dominate the new class of exchange-trade funds.

Bitcoin BTC +5.66% jumped by about 5% on Friday, rising above $42,000 for the first time in more than a week, according to The Block's Price Page . That's enough to value the 49,952 bitcoin the fund held as of Jan. 25 at more than $2 billion assuming there are no net outflows on Friday, making BlackRock's new ETF the first among completely new spot bitcoin exchange-traded funds to hit that threshold.

Grayscale's spot bitcoin ETF has about $20 billion in AUM, according to data posted by a Bloomberg Intelligence analyst, but its product is a conversion of its flagship fund GBTC.

"The bitcoin price has pushed IBIT's assets beyond $2 billion. This plus likely new flows today should mean it will be above $2 billion at close," Bloomberg Intelligence analyst James Seyffart wrote in a post on X.

Total trading volume for spot bitcoin ETFs has surpassed $22 billion since investors gained the ability to buy and sell the instruments earlier this month, according to Yahoo Finance data compiled by The Block .

Overall volume slowing as AUM grows

The top three spot bitcoin ETFs by trading volume have been those offered by Grayscale, BlackRock and Fidelity, which has nearly $2 billion in AUM. Products launched by Ark Invest and Bitwise each have more than $500 million in assets under management.

Volume has been slowing since the first day of trading, when buying and selling of the new products hit $2.3 billion, according to to Yahoo Finance data compiled by The Block. 


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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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