BlackRock CEO Remains Bullish on Bitcoin

BlackRock's CEO, Larry Fink, has expressed his astonishment and optimism regarding the success of the company's spot Bitcoin (BTC) exchange-traded fund (ETF), emphasizing his strong belief in Bitcoin's future.

In a March 27 interview with Fox Business, Fink remarked, “IBIT is the fastest growing ETF in the history of ETFs. Nothing has gained assets as fast as IBIT in the history of ETFs.”

The unexpected success of the iShares Bitcoin Trust (IBIT) has even taken Fink by surprise, especially its performance in the initial 11 weeks of trading.

Farside Investors reports that IBIT experienced a robust start, attracting $13.5 billion in its first 11 weeks, with a single-day peak of $849 million in inflows on March 12.

On average, IBIT has seen inflows exceeding $260 million per trading day.

Fink commented on the creation of a market characterized by increased liquidity and transparency, stating, “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.”

When asked if he anticipated IBIT to perform well, though not to this extent, Fink acknowledged, “Yes, definitely.”

He further emphasized his confidence in Bitcoin's enduring potential, saying, “I’m very bullish on the long-term viability of Bitcoin.”

According to BitMEX Research, IBIT now possesses $17.1 billion in Bitcoin and reached the $10 billion benchmark in just two months, a feat that the first gold ETF achieved in two years.

Among all approved ETFs, IBIT is second only to the Grayscale Bitcoin Trust, which holds $23.6 billion in BTC, although Grayscale's Bitcoin assets have declined from their peak before transitioning to a spot Bitcoin ETF.

The collective holdings of the nine spot Bitcoin ETF issuers, excluding Grayscale, now surpass $34.1 billion in Bitcoin.

IBIT, along with the Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB), are at the forefront in terms of inflows.

Nonetheless, some experts in the field suggest that certain spot Bitcoin ETF issuers might face closure due to unprofitability.

Hector McNeil, co-CEO and founder of HANetf, told Cointelegraph, “Most of the current ETFs launched will never even break even as costs will only work if they get to billions of assets under management, which they won’t.”

To remain competitive, several ETF issuers have reduced their fees, facing significant challenges against larger entities.

Bloomberg ETF analyst Henry Jim pointed out the dilemma for smaller issuers, stating, “If they match fees, they won’t have enough revenue to survive, and if they don’t lower fees, they won’t be able to gather enough critical mass assets to survive.”

On March 27, Hashdex became the latest firm to have its spot Bitcoin ETF approved, joining a crowded and competitive market as the 11th entrant in the United States.

Sources:

https://cointelegraph.com/news/blackrock-bitcoin-etf-fastest-growing-etf-larry-fink

https://www.foxbusiness.com/video/6349827399112

https://farside.co.uk/?p=997

https://x.com/BitMEXResearch/status/1772932061449392187

https://twitter.com/SimonDixonTwitt/status/1773100957636669749