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Most investors and even experts thought that the approval of a spot BTC ETF would only lead to short-term market fluctuations. Some still hold this belief. However, for weeks, we have been explaining during live broadcasts on the night of the ETF approval and afterwards that this is not the case. BlackRock has crossed a significant threshold in the last 24 hours, and investors need to adopt a long-term perspective on ETFs.
BlackRock Bitcoin ETF
Just two weeks after its launch on Nasdaq, BlackRock’s spot Bitcoin ETF reached $2 billion. The total assets under management (AUM) surpassed this significant milestone in a very short time.
According to data revealed by Bloomberg analyst James Seyffart, the recent fluctuation in BTC price has pushed the reserve value over $2.1 billion. Assets under management (AUM) are used to define the total market value of all financial assets held on behalf of the clients of the relevant fund.
The iShares Bitcoin Trust has been at the forefront with a $1.8 billion inflow over the past 10 days, just ahead of Fidelity’s Wise Origin Bitcoin Fund. Although GBTC is stronger in terms of volume, the assets it has accumulated during its time as the sole Bitcoin trust necessitate considering GBTC separately.
Bitcoin ETF and the Future
BlackRock was the best company to apply for an ETF to attract a wider audience to its crypto-based product. The world’s largest asset manager received ETF approval from the US, confirming Bitcoin’s legitimacy, and now in BlackRock’s prestigious building, reputable advisors are calling their wealthy clients to say, “come and buy Bitcoin.”
Indeed, that is exactly what they are doing because BTC is now widely accepted among risk assets. It is natural for advisors to suggest that a small portion of your portfolio exposed to BTC could be beneficial. Moreover, they are doing this with the confidence provided by BlackRock.
Therefore, it will not be possible to understand the effects of Spot Bitcoin ETFs on the markets after just 10 days. In the long term, we will need to look at how much volume BlackRock and others have created by reaching out to their clients about Bitcoin and drawing more demand in the first six months.
In the long term, if even a small part of the trillion-dollar ecosystem enters Bitcoin ETFs, it could trigger massive price movements. Seyffart expects Bitcoin ETFs to collect $10 billion in capital in their first year. This is roughly twice what the largest corporate investor, MicroStrategy, holds. Moreover, as this supply grows, scarcity will increase, and projections of prices multiplying, supported by the halving narrative (perhaps this will be the story of this bull run), will begin to be discussed.
