BlackRock, the world’s leading asset manager, recently unveiled significant details about its new Bitcoin ETF launched last Thursday in the United States.
The company announced an impressive acquisition of around $500 million in Bitcoin for the ETF, as stated on their iShares Bitcoin Trust webpage.
Based on data until the following Friday, the figure may vary due to ongoing market activities.
On its inaugural day, the ETF experienced high trading volumes, surpassing $1 billion.
It ranks among the top-performing funds out of the 11 approved by the SEC just before its debut.
BlackRock‘s direct involvement in acquiring Bitcoin and Coinbase’s role in custody reflects a strategic approach to cryptocurrency investment.
Before the launch, there was speculation about BlackRock’s initial investment in Bitcoin, estimated at R$ 50 million for the fund’s initial operation.
BlackRock’s Bitcoin Investment Strategy
Now, the firm holds over 11,000 Bitcoin units, a notable amount yet still below the holdings of the largest Bitcoin investors like Binance and the U.S. government.
Bitcoin ETFs mirror Bitcoin’s price movements, providing an investment alternative without the need for direct cryptocurrency purchase.
Managed by firms like BlackRock, these ETFs issue shares traded on stock exchanges, similar to company stocks.
The managers oversee fund operations, aligning Bitcoin trades with market fluctuations and relieving investors from direct asset custody.
Asset managers charge fees for their services, which vary in the U.S. between 0.19% and 1.5%.
BlackRock has set a competitive fee rate of 0.25%, one of the lowest in the market, with a reduced fee during the ETF’s first six months.
BlackRock’s strategic foray into the cryptocurrency sector reflects an increasing acknowledgment of the potential of digital assets.
It also marks a pivotal development in how mainstream financial services are approaching and integrating Bitcoin.