Blackrock, the world’s largest asset manager, reported a record $10.5 trillion in assets under management (AUM) for the first quarter ended March 31, 2024, up $1.4 trillion year-over-year. Concurrently, its spot Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), has amassed nearly 270,000 bitcoins, maintaining its dominant position in the U.S. spot Bitcoin ETF market.
IBIT Holds Nearly 270K BTC, Valued at Over $18.9 Billion
As of April 11, 2024, IBIT’s bitcoin holdings stood at approximately 269,314 BTC, representing a notional value exceeding $18.9 billion. The fund’s rapid growth has been fueled by strong retail and institutional demand. Blackrock CEO Larry Fink recently described IBIT as “the fastest growing ETF in the history of ETFs,” adding that he is “very bullish on the long-term viability of Bitcoin.”
Expanded Authorized Participants List
Last week, Blackrock filed an amendment to the IBIT prospectus, revealing that the fund now has nine authorized participants: ABN AMRO Clearing USA, Citadel Securities, Citigroup Global Markets, Goldman Sachs, Jane Street Capital, JP Morgan Securities, Macquarie Capital (USA), UBS Securities, and Virtu Americas. The increased number of authorized participants enhances liquidity and operational efficiency for the ETF.
Spot Ether ETF Filing and Regulatory Cloud
Blackrock has also submitted an application to the U.S. Securities and Exchange Commission (SEC) to launch a spot Ether ETF. While some optimism surrounds potential SEC approval by the May deadline, skepticism is growing. Jan Van Eck, CEO of investment firm VanEck, recently expressed doubts about his own firm’s application, anticipating rejection. Reports also suggest the SEC may be considering classifying Ether as a security. Nevertheless, Fink believes that even if ETH is deemed a security, Blackrock could still proceed with a spot Ether ETF.
Circle Enables Smart Contract Functionality for BUIDL
On April 11, fintech firm and stablecoin issuer Circle introduced smart contract capabilities for the Blackrock USD Institutional Digital Liquidity Fund (BUIDL), allowing holders to exchange their BUIDL shares for USDC. This integration aims to improve capital efficiency for institutional investors in the blockchain ecosystem.
Overall, Blackrock continues to accelerate its digital asset strategy, with its Bitcoin ETF setting new benchmarks. However, the path for spot Ether ETFs remains uncertain, hinging on SEC’s evolving stance on cryptocurrency regulation.