The Bitcoin Koers had an unprecedented increase last year, partly driven by billions of instruments in spot ETFs. Now it appears that asset manager BlackRock also benefits considerably from this.
With his bitcoin (BTC) and Ethereum (ETH) funds, BlackRock generates an estimated 260 million dollars in annual turnover. With that, the ETFs appear to be rapidly turning into a profit machine for the largest asset manager in the world.
Bitcoin ETF generates more profit than S&P 500 Fund
The majority of the income comes from the popular Ishares Bitcoin Trust (IBIT), good for around $ 218 million a year. The Ethereum fund ETHA contributes to the remaining turnover with $ 42 million. It is striking that IBIT is now more profitable than BlackRock’s classic S&P 500 Fund IVV. This is due to the higher management allowance of 0.25 percent, compared to only 0.03 percent at IVV.
According to Leon Waidmann from the Onchain Foundation, the figures that crypto has definitively penetrated the traditional financial world. “The largest asset manager in the world proves that Crypto is a serious source of income. This is no longer an experiment,” said Waidmann. He compares the rapid growth of the funds with the rise of tech giant Amazon.
Spot ETFs Pumps billions in the cryptomarket
The rapid inflow of capital has given the cryptomarkt a huge boost. According to data from Farside, the joint inflow into Bitcoin ETFs is now $ 57.3 billion. A significant part of this is probably ‘new money’ of investors who previously had no access to Bitcoin. Especially for companies it applies that managing crypto-assets is often complex and risky. Spot ETFs offer a simple and regulated alternative for this.
The effects are visible: with the launch of the ETFs in January, BTC was still around $ 43,000. A year and a half later, the Bitcoin Koers touched a new all-time high of almost 124,500 dollars.
Ibit breaks records, Ethereum ETF is also growing rapidly
The Ishares Bitcoin Trust is now one of the 25 largest ETFs in the world. Within 374 days, the fund grew to a capital of 80 billion dollars. This makes it the fastest growing ETF ever. For comparison: BlackRocks IEFS fund took more than five years.
The Ethereum fund Etha also shows impressive figures. Within 251 days it grew to a capacity of 10 billion dollars. This makes Etha the third fastest growing ETF ever to pass this border.
Source: https://newsbit.nl/blackrock-verdient-jaarlijks-260-miljoen-dollar-aan-bitcoin-en-ethereum-etfs/
