BlackRock Bitcoin ETF Surpasses $10 Billion AUM, Outranking iShares Silver Trust

The BlackRock iShares Bitcoin ETF, known as “IBIT,” has surpassed the iShares Silver Trust to reach $10 billion in assets under management (AUM). The growing interest in Bitcoin has propelled IBIT ahead of the silver trust, which has an AUM of nearly $9.8 billion. This shift in the Commodity ETF landscape highlights the increasing prominence of Bitcoin ETFs.

Hector McNeil, co-CEO and co-founder of HANetf, attributes IBIT’s success to the widespread excitement and frenzy surrounding Bitcoin as an asset class, particularly with the recent approvals of US ETFs. With BlackRock’s entry into Bitcoin through a new Spot Bitcoin product, market dynamics have been further energized, leading to a surge in AUM.

McNeil emphasizes the competitive environment and substantial marketing efforts driving IBIT’s growth, fueled by both Bitcoin price momentum and inflows. Comparatively, he notes that precious metals, including silver, have had a good price performance but have not seen the same level of fervor as Bitcoin, explaining IBIT’s overtaking of the silver trust.

Furthermore, the shift in dominance from Grayscale’s Bitcoin product (GBTC) to IBIT is significant, as GBTC experienced notable outflows amounting to $600 million. Laurent Kssis, a crypto expert, highlights the inadequacies of GBTC for institutional investors and praises IBIT’s ascendance in the trading hierarchy.

Reflecting on the lengthy journey to Bitcoin ETF approval, which began with the Winklevoss twins’ initial filing in 2013, Kssis underscores the evolving landscape in which trading platforms are gradually warming up to ETFs, opening up new investment opportunities.

The appetite for crypto ETFs persists on Wall Street, with reports that Morgan Stanley is exploring the inclusion of spot Bitcoin ETFs on its brokerage platform. As Bitcoin continues to climb, reaching around $63,755, investor optimism grows alongside anticipation of upcoming Federal Reserve policy adjustments.

The narrative of Bitcoin ETFs displacing traditional commodities like silver underscores the evolving investment landscape, where digital assets are increasingly gaining traction among institutional and retail investors alike.