BlackRock's Bitcoin ETF Hits $10 Billion AUM, Beating SPDR Gold First

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Bittime - The launch of Bitcoin ETF (Exchange Traded Fund) signals a revolution in Bitcoin investing. ETFs allow investors to invest in Bitcoin in an easy and familiar way.

It is known that the BlackRock Bitcoin ETF will reach $10 billion in AUM (assets under management) in just 39 trading days in 2024. This is a significant achievement compared to the first gold ETF in the US, SPDR Gold Shares (GLD), which took 2 years to reach $10 billion AUM.

BlackRock Bitcoin ETF Performance

The BlackRock Bitcoin ETF (iShares Bitcoin Strategy ETF) launched on October 21, 2023. This ETF offers investors exposure to Bitcoin (BTC) through the CME Bitcoin futures contract.

Comparison with SPDR Gold Shares

SPDR Gold Shares was launched in November 2004 and is the world's largest gold ETF. This ETF offers investors exposure to gold through physical ownership of gold bullion.

Factors Driving the Growth of BlackRock's Bitcoin ETF

Several factors are driving the rapid growth of BlackRock's Bitcoin ETF:

• Increasing investor interest in Bitcoin: Bitcoin has become an increasingly popular investment asset in recent years. This is driven by several factors, including high inflation, low interest rates, and increasing awareness about Bitcoin.
• Availability of Bitcoin ETFs: The launch of Bitcoin ETFs makes Bitcoin more accessible to institutional and retail investors.
• BlackRock's credibility: BlackRock is one of the largest asset management companies in the world. BlackRock's involvement in the Bitcoin ETF gives credibility and legitimacy to this asset.

Also read: Mining Bitcoin vs Validating Bitcoin Transactions

Implications for the Future of Bitcoin

The rapid growth of BlackRock's Bitcoin ETF shows that there is significant investor interest in Bitcoin. This could help encourage wider adoption of Bitcoin and increase the price of Bitcoin in the future.

Deeper Analysis

Here is some deeper analysis of the implications of the BlackRock Bitcoin ETF's achievements:

• Impact on Bitcoin Market: The rapid growth of BlackRock's Bitcoin ETF could help increase Bitcoin market liquidity and reduce its volatility. This may make Bitcoin more attractive to institutional investors.
• Competition in the Bitcoin ETF Market: BlackRock is not the only company offering a Bitcoin ETF. There are several other Bitcoin ETFs that have been launched, and there will likely be more in the future. This competition could help lower the costs of Bitcoin ETFs and make them more attractive to investors.
• Regulation: Bitcoin regulation is still developing in many countries. Regulatory uncertainty may hinder the growth of the Bitcoin ETF market.

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Several new developments have occurred in the Bitcoin ETF market

• ProShares Bitcoin Strategy ETF (BITO): BITO was the first Bitcoin ETF to launch in the US on October 19, 2021. BITO has experienced rapid growth, with AUM reaching $12.4 billion on November 14, 2023.
• Valkyrie Bitcoin Strategy ETF (BTF): BTF is the second Bitcoin ETF to launch in the US on October 22, 2021. BTF has experienced slower growth than BITO, with AUM reaching $1.1 billion on November 14, 2023.
• VanEck Bitcoin Strategy ETF (XBTF): XBTF is the third Bitcoin ETF to launch in the US on November 14, 2023.

Challenges Facing Bitcoin ETFs

Even though Bitcoin ETFs have experienced rapid growth, they still face several challenges, including:

• Fees: Bitcoin ETF fees are generally higher compared to traditional ETFs. This may make Bitcoin ETFs less attractive to investors.
• Volatility: Bitcoin is a highly volatile asset. This may make Bitcoin ETFs less attractive to investors looking for a stable investment.
• Regulation: Bitcoin regulation is still developing in many countries. Regulatory uncertainty may hinder the growth of the Bitcoin ETF market.

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Conclusion

The BlackRock Bitcoin ETF's achievement of reaching $10 billion AUM in a short time is a positive sign for the future of Bitcoin. This shows that there is significant investor interest in Bitcoin and could help drive wider Bitcoin adoption. 

How to Buy Bitcoin (BTC) on Bittime

You can buy and sell  Bitcoin (BTC)  in an easy and safe way via  Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Bitcoin (BTC)  is available on Bittime with  the market pair BTC/IDR . To be able to buy  BTC IDR  at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn  the complete guide on how to buy Bitcoin (BTC) on Bittime . 

Monitor price  chart movements  of Bitcoin (BTC ) ,  Ethereum (ETH) ,  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.

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Buy Ethereum (ETH): Everything You Need to Know Before Buying

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DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.