Major Asset Manager Focuses Crypto ETF Strategy on Bitcoin and Ethereum
BlackRock (BLK), a global asset manager, continues to strengthen its spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the U.S. instead of focusing on altcoins. Known as the world's largest asset management company, BlackRock aims to connect more customers with its crypto ETFs named IBIT and ETHA. Currently, only a "small fraction" of the company's clients hold these crypto ETFs.
Meanwhile, Bloomberg ETF analyst Eric Balchunas shared insights on the growing demand and popularity of crypto ETFs on the X platform. He noted that as the cryptocurrency market reaches new peaks, discussions surrounding ETFs like XRP and Solana have begun, indicating that more capital influx is expected.
BlackRock’s Head of Thematic and Active ETFs, Jay Jacobs, stated that the firm is "just scratching the surface" with Bitcoin and particularly Ethereum. While very few customers hold shares of IBIT and ETHA, BlackRock aims to attract more investments in these products and is not currently considering creating new altcoin ETFs.
Michael Venuto, co-founder and CIO of Tidal, mentioned that the firm has received ETF proposals combining Bitcoin with other assets and predicted that many options strategies will be associated with assets like Bitcoin, NVDA, TSLA, and MSTR in the future.
According to recent data, U.S.-based spot Bitcoin ETFs have reached a historical milestone with total reserves of 500,000 BTC. This equates to approximately $50.6 billion when evaluated at Bitcoin's current market value of $101,000. This extraordinary growth reflects strong investor demand for regulated Bitcoin investments. Launched in January, these ETFs have absorbed more than 2.5% of Bitcoin's circulating supply within a year.
Leading asset managers such as BlackRock, Fidelity (FIS), ARK, 21Shares, and Bitwise are spearheading Bitcoin ETF inflows. In the latest updates, BlackRock’s IBIT fund recorded total inflows of $35 billion, while Fidelity's FBTC saw inflows of $12.22 billion. ARK's ARKB and Bitwise's BITB attracted $2.64 billion and $2.21 billion, respectively. Other asset managers like WisdomTree, VanEck, Coinshares Valkyrie, Franklin, and Invesco Galaxy Bitcoin ETF recorded lower inflows. Meanwhile, Grayscale has experienced a significant outflow of $20.89 billion since its launch, which continues.
Recent data shows that these ETFs have recently exceeded a total asset threshold of 1.1 million BTC, making them among the largest Bitcoin holders, surpassing the assets of Bitcoin's creator, Satoshi Nakamoto. This rapid accumulation aligns with increased demand from institutional and individual investors, driven by concerns about inflation and Bitcoin's narrative as digital gold.
Bitcoin has drawn attention by testing the $101,000 level again in yesterday's trades. The ability of large investors to capitalize on price declines has played a role in this rise. With limited downturns and Bitcoin's push toward the $100,000 region, discussions about whether a new record level will be reached have begun.
There are differing opinions in the market, with some viewing this increase as stemming more from excitement and speculation rather than fundamentals. On the other hand, the rising number of investors holding significant amounts of Bitcoin indicates a strong accumulation phase. Many consider the current price level as a potential bottom. As excitement for the new year grows, this situation may pave the way for a significant breakout.
Currently, Bitcoin has risen back to the $101,000 level after 24 hours of selling pressure. This came after the liquidation of $170 million in short positions. During this process, open positions increased by approximately 6%, reaching $64 billion. As selling pressure returned during U.S. trading hours, Bitcoin ended the day near the $100,000 mark. In today’s trading, Bitcoin fluctuated, dipping to $99,200 but bounced back to the $100,000 region with morning purchases.