IBIT Emerges as BlackRock’s Top-Ranked ETF, Expected to Generate Tens of Millions of Dollars in Profits within a Year
According to data provided by ETF analyst Eric Balchunas from Bloomberg, the iShares Bitcoin Spot ETF (IBIT) by BlackRock currently accounts for over half of BlackRock’s net flows since the beginning of the year, and it is twice the size of the other 420 ETFs. BlackRock’s diversified investments and high market sensitivity have brought tremendous business opportunities in this new market.
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BlackRock’s Diversified Investments with High Market Sensitivity
Bitcoin ETF Brings Lucrative Income to BlackRock
Although Vanguard claims to be the inventor of ETFs, its overall market share slightly lags behind BlackRock. In the frenzy of the Bitcoin spot ETF, Vanguard has also chosen to strengthen its investment policy in “non-cryptocurrency” assets.
(Why not list a Bitcoin ETF? Vanguard explains: immature, speculative assets with no intrinsic value)
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Balchunas analyzes why BlackRock is the only company able to keep up with Vanguard’s pace. It is because their investment scope is highly diversified and they continuously seek new sources of growth to supplement their core businesses, which is also the reason they turned to Bitcoin. The chart below shows the issuer market share based on asset categories, revealing BlackRock’s diversification. It accounts for 30% in commodity ETFs and 14.1% in thematic categories, while Vanguard has not invested in either of these two categories.
Source: Bloomberg
The frenzy of the Bitcoin spot ETF is also sparked by BlackRock, which has brought in at least $24.6 billion in capital flows to the market (excluding Grayscale’s GBTC).
Balchunas also stated that BlackRock’s IBIT and Fidelity’s FBTC have set a record of consecutive 49-day capital inflows, which previously only 30 ETFs had achieved.
What is quite crazy is that IBIT currently accounts for over half of BlackRock’s net flows since the beginning of the year, and it is twice the size of the other 420 ETFs. FBTC has a greater impact within the company, accounting for 70% of Fidelity’s net flows since the beginning of the year, which is 5 times more than any other ETF.
According to BlackRock’s 2023 annual report, the company had a net asset inflow of $288.7 billion last year, while IBIT has attracted $13.3 billion in just over two months. With an expense ratio of 0.12%, the current asset size of $15.8 billion can bring in $19 million in annual revenue. And regardless of whether Bitcoin goes up or down, BlackRock is the biggest winner!
IBIT
Fidelity
Bitcoin Spot ETF
BlackRock
Further reading:
Bitcoin ETF sees two consecutive days of outflows as BTC falls below $61,000, marking the largest daily decline since the FTX incident
Bitcoin spot ETF’s ten-day streak of net inflows interrupted, GBTC sees record net outflow.
