BlackRock’s Bitcoin ETF Reaches $1 Billion AUM Milestone Amid Crypto Market Correction

BlackRock’s iShares Bitcoin Trust (IBIT) has reached $1 billion in assets under management (AUM) in its first week of trading. This makes BlackRock the first Bitcoin ETF provider to reach this significant AUM milestone.

IBIT, which has $1 billion in assets under management, began trading on January 12, indicating strong investor interest in the newly launched bitcoin ETF.

Robert Mitchnick, BlackRock’s Head of Digital Assets, expressed enthusiasm for the achievement and emphasized the company’s long-term commitment to providing investors with access to a high-quality ETF.

According to statistics, bitcoin accounts for 99% of IBIT’s total assets, with fiat currency accounting for approximately $60,000 of the remainder.

As of the most recent update, the fund’s total holdings were 25,067 Bitcoin. The closing price of IBIT on Wednesday was $24.41, reflecting a 0.42% premium over spot Bitcoin.

The fund has demonstrated consistent trading activity, with an average daily trading volume of 14 million shares. This indicates IBIT’s strong and active market presence in its first week of trading.

Despite BlackRock’s notable success with its bitcoin ETF, the overall crypto market experienced a significant correction on the same day.

This correction has sparked debate within the crypto community about the potential impact of ETFs on the future of the crypto market.

Contrary to the optimistic market sentiment following the recent SEC approval for ETFs, Bitcoin’s price remained relatively flat throughout the week.

This intriguing development raises questions about the complex relationship between the emergence of Bitcoin ETFs and the overall performance of the crypto market.