Amid the increasing demand for United States spot Bitcoin Exchange-Traded Funds (ETFs), BlackRock CEO Larry Fink has expressed his delight at the remarkable performance of the firm’s ETF, IBIT.
He stated that IBIT ETF has exceeded all expectations and demonstrated strong bullish sentiment towards Bitcoin’s long-term prospects.
IBIT: The Fastest Growing ETF
In a recent interview with Fox Business on March 27, Fink highlighted the unprecedented success of the iShares Bitcoin Trust (IBIT), BlackRock’s Bitcoin ETF, labeling it “the fastest growing ETF in the history of ETFs.”
Fink expressed his surprise at the overwhelming demand for IBIT, underscoring the creation of a market characterized by enhanced liquidity and transparency. When questioned about IBIT’s performance relative to expectations, Fink affirmed that it has exceeded projections. He also expressed his bullish outlook on Bitcoin’s long-term viability, stating:
“That surprised me how much [bitcoin has] gone up… We’re creating a market that has more liquidity, more transparency and I’m pleasantly surprised. I would never have predicted it before we filed it that we were going to see this type of retail demand.”
IBIT ETF Success Story
Notably, since its launch on January 11, IBIT’s performance has been nothing short of astounding. The market leader currently holds around $17.2 billion in bitcoin, as reported by BitMEX Research, achieving the $10 billion milestone within a mere two months—a feat that took the first gold ETF two years to accomplish.
Interestingly, Bloomberg ETF analyst Eric Balchunas recently shared the top 30 assets ranked by their performance within the initial 50 days on the market, drawing from a global pool of 11,338 funds. Notably, four Bitcoin ETFs secured spots on this prestigious list, with IBIT claiming the top position.
In response to inquiries from a Twitter user regarding the possible influence of increased global wealth on these rankings, Balchunas acknowledged the relevance of this factor but emphasized that even when adjusted for inflation, IBIT’s performance remains remarkable.
“Even adjusted for inflation, it’s still a blowout for IBIT,” he writes.
Competition Intensifies With 11th Participant
Despite IBIT’s impressive performance, it remains second only to the Grayscale Bitcoin Trust in terms of bitcoin holdings, which stands at $23.6 billion. Notably, Grayscale’s bitcoin holdings have experienced a decline from its previous 620,000 BTC position prior to its conversion into a spot Bitcoin ETF.
In addition to IBIT, other prominent spot Bitcoin ETFs such as the Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARKB) have also witnessed substantial inflows, contributing to the burgeoning competition within the US spot Bitcoin ETF market.
Furthermore, Hashdex, an asset management firm, has recently received approval for its spot Bitcoin ETF, marking its entry as the 11th participant in the competitive US spot Bitcoin ETF landscape.
As the market continues to evolve and attract institutional interest, the success of Bitcoin ETFs such as IBIT underscores the growing mainstream adoption of digital assets as legitimate investment vehicles.
