28 Mar

BlackRock's CEO, Larry Fink, expresses his positive surprise at the significant retail demand for his firm's spot Bitcoin ETF.

 In a March 27 interview with Fox Business, Fink highlighted that the iShares Bitcoin Trust (IBIT) has experienced unprecedented growth, describing it as the fastest-growing ETF in history. He noted that IBIT's performance has exceeded his expectations, particularly during the first 11 trading weeks. 

According to data from Farside Investors, IBIT has attracted $13.5 billion in flows during its initial 11 weeks of trading, reaching a daily high of $849 million on March 12. On average, IBIT sees inflows of slightly over $260 million per trading day. 

“We’re creating now 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,” Fink said.

 Asked whether IBIT would “do good, but not this good,” Fink responded: “Yes, definitely.” 

“I’m very bullish on the long-term viability of Bitcoin,” the BlackRock CEO added. 

"We're now establishing a market with increased liquidity and transparency, and I'm pleasantly surprised. I wouldn't have anticipated this level of retail demand before we introduced it," Fink remarked. 

When questioned if IBIT's performance exceeded expectations, Fink acknowledged, "Yes, certainly." 

"I'm highly optimistic about Bitcoin's long-term sustainability," the BlackRock CEO concluded. 

IBIT presently holds $17.1 billion worth of Bitcoin, as reported by BitMEX Research. Remarkably, it achieved the $10 billion milestone in just two months, a feat that took the first gold ETF two years to accomplish. 

Among the currently approved ETFs, IBIT ranks second in Bitcoin holdings, trailing only the Grayscale Bitcoin Trust, which holds $23.6 billion worth of BTC. However, Grayscale's Bitcoin holdings have been declining, dropping from the 620,000 BTC it held before transitioning to a spot Bitcoin ETF. 

Some industry experts anticipate that certain issuers of spot Bitcoin ETFs might face the possibility of closure due to insufficient profitability. Hashdex, an asset management firm, received approval for its spot Bitcoin ETF on March 27th, marking the latest addition to the competitive spot Bitcoin ETF market in the United States. 

March 2024, Cryptoniteuae

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