• Thu. May 23rd, 2024

BlackRock’s Record BTC ETF Inflows Propels Q1 Earnings

Steve Kornacki

BySteve Kornacki

Apr 12, 2024
BlackRock's Record BTC ETF Inflows Propels Q1 Earnings

BlackRock Bitcoin ETF Dominates Q1 Inflows

During an earnings call on Friday, BlackRock reported $67 billion in net inflows across its extensive ETF range in the year’s first quarter. Approximately $13.9 billion, or 21%, flowed into IBIT, making it one of the firm’s most successful ETF launches.

The unprecedented success of the IBIT has been attributed to the “surging demand” for exposure to Bitcoin (BTC) among investors. BlackRock’s Chief Financial Officer, Martin Small, noted that core equity and fixed-income ETFs also experienced net inflows of $37 billion and $18 billion, respectively.

BlackRock’s CEO, Larry Fink, hailed the IBIT as the fastest-growing crypto ETF in history, highlighting its exceptional performance since its inception. Notably, the IBIT and its competitors, such as Fidelity’s spot BTC ETF, have witnessed net inflows on every trading day since their launch, a remarkable feat for new ETFs in cryptocurrency.

Record Assets Under Management Driven By Crypto Momentum

The momentum behind the BlackRock Bitcoin fund has been pivotal in driving the firm to achieve a record assets under management (AUM) of $10.5 trillion in the first quarter of 2024. This milestone underscores the growing integration of cryptocurrencies into traditional investment portfolios.

Following the success of its spot BTC ETF (IBIT), BlackRock has introduced its first tokenized fund. The BlackRock USD Institutional Digital Liquidity Fund, launched last quarter, provides qualified investors with exposure to US dollar yields through tokenized real-world assets via Securitize Markets.

The asset manager’s CFO emphasized that these initiatives and milestones reflect BlackRock’s dedication to providing better access to a broader range of investment opportunities. Moreover, the firm’s foray into the cryptocurrency space and tokenized assets signifies a move to adapt to evolving market trends and meet the diverse needs of its clients.

US Government Leads Global Bitcoin Holdings – Arkham Data

Meanwhile, the crypto intelligence platform (Arkham) has unveiled data showcasing the United States government as a significant holder of the largest cryptocurrency (BTC). Alongside the US, countries like the United Kingdom and Germany are substantial holders of BTC, per Arkham’s latest data.

As of April 12, 2024, Arkham’s data reveals that the US government holds 212,847 BTC (or approximately $15 billion at its current price), making it the largest Bitcoin holder among nations worldwide. The US government also holds around $200 million in other cryptocurrencies such as Ether (ETH), USDC, and USDT.

The United Kingdom ranks second (behind the US) in BTC holdings, with 61,245 BTC. Germany holds the third position with 49,858 BTC. This data indicates that cryptocurrency holdings in government treasuries worldwide keep rising.

Arkham’s Dashboard Exposes Government Crypto Assets

Per the Arkham data, since early 2023, the US government has added at least 5,000 BTC to its holdings. Interestingly, a significant portion of the US government’s BTC holdings can be attributed to confiscations related to various cases, like the dark web market (Silk Road) and the hackers of the crypto exchange Bitfinex.

This further underscores the evolving regulatory landscape surrounding cryptocurrencies and their role in law enforcement activities. With the increasing institutional adoption of BTC and other digital currencies, understanding the extent of government involvement in crypto becomes crucial for investors.

Meanwhile, El Salvador, the first country to adopt Bitcoin as legal tender, holds significantly fewer BTCs than the nations mentioned in the Arkham data, with 5,717 BTCs valued at $405 million.

Steve Kornacki

Steve Kornacki

Steve Kornacki, a respected author at Big Trends Signals, uses his deep online trading acumen to create comprehensive guides and balanced reviews, empowering traders in their digital pursuits.

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