BlackRock Spot BTC ETF Breaks Above $2B in AUM

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The official spot Bitcoin exchange-traded fund (ETF) created by BlackRock, the world’s largest asset management firm, has officially surpassed $2 billion in assets under management after the price of the leading digital asset broke above $42,000. 

Bitcoin broke past $42,000 on Friday night, pushing the AUM of iShares Bitcoin Trust (IBIT) above $2 billion, making it one of the fastest of the recently approved ETFs to reach the number, dominating the similar offerings from competitors.

AUM of the BlackRock BTC ETF Skyrockets

The price of Bitcoin jumped around 5% on Friday, breaking above $45,000 for the first time in the past seven days, according to the data from TradingView. It is important to note that BlackRock held around 49,952 bitcoins in the fund as of January 25, which makes its total value above $2 billion. 

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However, this is only true if there was no money flowing out of the asset management company’s iShares Bitcoin Trust on Friday.

BlackRock has a Strong Competitor

On the other hand, Grayscale’s spot Bitcoin ETF has around $20 billion in AUM, as pointed out by Bloomberg Intelligence analyst James Seyffart. However, this value comes after the conversion of its flagship product, GBTC, into its spot BTC ETF.

“The bitcoin price has pushed IBIT’s assets beyond $2 billion. This plus likely new flows today should mean it will be above $2 billion at close,” Bloomberg Intelligence analyst James Seyffart wrote in a post on social media platform X.

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Trading Volume of BTC ETFs

The trading volume of spot Bitcoin ETFs has continued to soar, surpassing $22 billion since the approval of the eleven applications for the product filed by BlackRock, Bitwise, Fidelity, and others on January 10. 

The top three ETFs by trading volume are Grayscale, BlackRock, and Fidelity, while ARK Invest and Bitwise each have more than $500 million in assets under management. As per official data, the trading volume of the products has been on the decline since approval, when the volume hit $2.3 billion. 

Concerns Surrounding Spot BTC ETFs

Rostin Behnam, the Chair of the Commodity Futures Trading Commission (CFTC), recently said that the approval of the spot BTC ETFs by the United States Securities and Exchange Commission (SEC) poses risks for investors. 

“I fear that the regulatory approval of bitcoin ETPs introduces risk that, in spite of yellow flags, market participants, retail and institutional alike, may mistake the technical approval of a product—with actual regulatory oversight of the cash commodity digital assets,” Behnam said.

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