1 of every 4 dollars that BlackRock earns with its ETFs is thanks to bitcoin
Key facts:
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BlackRock’s IBIT has accumulated $16.6 billion in revenue so far this year.
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Since their introduction into the traditional market, bitcoin ETFs have attracted a large flow of money.
Bitcoin ETFs (BTC) account for 26% of BlackRock’s exchange-traded fund gains.
This American company, founded and run by Larry Fink, issues the largest BTC spot fund in the world. It is about of the iShares Bitcoin Trust (IBIT), which accumulates a figure in inflows close to 16.6 billion dollars in 2024.
A relevant fact is that this percentage of the profits obtained occurred less than 6 months after the bitcoin ETFs were implemented in the United States. This is evident proof of the positive impact they had on the market and the rapid adoption of new investors.
According to Eric Balchunas, Bloomberg specialist and analyst, so far in 2024, total inflows into BlackRock ETFs amount to 65 billion of which, 16.6 billion dollars were received thanks to the bitcoin fund.
BlackRock currently offers 433 ETFs and together they bring together almost $3 billion in assets.
In this way, during the first half of the year, BlackRock’s BTC spot funds achieved a quarter of the total income obtained by the ETFs listed by the company.
It is the largest financial company in the world, in which the IBIT has already positioned itself as the 31st with the highest market capitalization, of the 433 mentioned above. The rapid impact that the inclusion of bitcoin in ETFs generated on it never ceases to amaze.
So much so that, on May 28, 2024, Larry Fink’s company, with its IBIT, surpassed the Grayscale Bitcoin Trust (GBTC) as the world’s largest Bitcoin ETFafter gathering 291,563 BTCthe equivalent of more than 20 billion dollars.
On the other hand, in the following graph provided by the Farside analysis platform, you can see the flow of money from May 16 to June 4 in the different companies that offer ETFs linked to bitcoin. In the second column from the left of the table, the IBIT money flow is described. On each of those days, except June 3, BlackRock’s IBIT was the fund that had the most money inflowwith an average of 168 million dollars daily.
Fidelity also benefits from its bitcoin ETFs
Companies issuing bitcoin ETFs have to buy the digital currency to back their instruments. In this way, due to the law of supply and demand, they cause movements in the price of BTC.
Over the past six months, those movements were bullish due to the increased flow of money that ETFs allowed investors to inject into the digital ecosystem.
Another company that has benefited greatly from bitcoin ETFs is Fidelity. Although, in magnitude, it is smaller than BlackRock, percentage-wise, bitcoin ETFs represent a larger part of its income.
Fidelity, with its Wise Origin Bitcoin Fund ETF (FBTC) obtained revenues close to $8.9 billion in the first half of the year. This figure represented 56% of his ETF gains.
On June 4, for example, Fidelity’s FBTC received $378 million. This figure represented almost half of the total inflows of all US bitcoin ETFs, which reached $887 million.
