BlackRock's exchange-traded fund takes first place among Bitcoin ETFs

The iShares Bitcoin Trust, which manages the assets of BlackRock's spot Bitcoin ETF, said that in terms of the volume of funds raised by the fund ($1 billion), it ranked first among all 11 existing Bitcoin ETFs.

According to the iShares Bitcoin Trust (IBIT) team, the fund’s asset structure is 99% bitcoin, and at the time of the last data update, the fund managed 25,067 BTC.

“We are delighted to see IBIT reach this milestone in its first week of existence. This confirms the high investor demand. And this is just the beginning. We have a long-term commitment to providing investors with access to our quality ETFs,” said Robert Mitchnick, head of digital assets at BlackRock.

The IBIT fund closed trading in ETF shares on Wednesday, January 17, at $24.41 per share and the asset is now trading at a slight premium of 0.42%. The fund recorded an average daily trading volume of 14 million units.

The day before, the founder of the investment company VKSM, Brian Kelly, told the CNBC Crypto audience that already on the third day of trading, Grayscale, BlackRock and Fidelity became the undisputed leaders in the growing Bitcoin ETF spot market, collectively controlling about 90% of the total trading volume.

“By the end of the trading session, Grayscale, BlackRock and Fidelity demonstrated their absolute dominance, collectively contributing more than $1.6 billion of the $1.8 billion in total trading volume. The competition between these titans could truly spark innovation in the Bitcoin ETF market,” said Brian Kelly.

The founder of VKSM believes that such consolidation is “both a blessing and a curse”. On the one hand, ensuring the stability and legitimacy of the crypto space. But on the other hand, raising concerns about collusion and lack of diversification for Bitcoin ETF investors.

Earlier, Bloomberg Intelligence analyst Eric Balchunas reported that the daily trading volumes of spot Bitcoin exchange-traded funds launched in the United States have already far exceeded the daily turnover of the 500 largest ETFs launched last year for other assets.