BlackRock’s IBIT Bitcoin ETF surpasses $2B in market cap

BlackRock's bitcoin exchange-traded fund (ETF) assets under management (AUM) reached $2 billion on January 26, two weeks after its debut on the Nasdaq.

Bitcoin's (BTC) price performance boosted the fund's market capitalization to $2.11 billion, according to Bloomberg analyst James Seifert. Following the start of the ETF sale on January 11, the price of the cryptocurrency reached $42,000 for the first time in seven days after the sale.

“Assets under management” is a term used to describe the total market value of all financial assets held by a fund on behalf of its clients. That means BlackRock's iShares Bitcoin Trust (IBIT) is leading the race for investor capital, ahead of Fidelity's Wise Origin Bitcoin Fund (FBTC) with $1.8 billion in inflows in 10 days.

BlackRock is building its market reputation as the world's largest asset manager to attract a wider audience to its crypto-based products.

Unlike asset managers like VanEck, who target early adopters and the crypto community with Bitcoin ETF TV commercials, BlackRock chose to connect with baby boomers with a two-minute video of one of its executives explaining Bitcoin's value proposition and how investors can gain exposure. The new ETF

Annual fees paid by issuers may be contributing to capital attraction. BlackRock has set the fee for the iShare ETF at 0.12% in the first 12 months, or up to the first $5 billion in assets under management, then plans to raise it to 0.25%.

Several other issuers also offer competitive fees, with ARK Invest listing a 0.21% fee, VanEck listing a 0.25% fee, and Bitwise charging 0.20%. ETF fees are not paid directly to investors, but are deducted from the ETF's performance, reducing investors' returns.

The Seifert Bitcoin ETF expects to raise $10 billion in capital in its first year.

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