- On Thursday, investors contributed almost $170 million to IBIT.
- One possible factor influencing capital attractiveness might be the lucrative yearly fees.
Among the newly issued spot bitcoin products, BlackRock iShares Bitcoin ETF (IBIT) became the first on Friday to exceed $2 billion in assets under management (AUM). This does not account for Grayscale’s GBTC, which was a closed-end fund with approximately $30 billion in AUM until it became a spot ETF.
On Thursday, investors contributed almost $170 million to IBIT by buying nearly 4,300 bitcoin, increasing the total number of tokens owned to 49,952. As of early Friday, when bitcoin’s price soared above $40,000, AUM had surpassed $2 billion.
Enticing Investors With Lucrative Fees
One possible factor influencing capital attractiveness might be the yearly fees that issuers impose. For the first twelve months, or until the first five billion dollars in assets managed, BlackRock has set its fee for the iShare ETF at 0.12%. After that, it intends to raise it to 0.25%.
A number of other issuers also provide reasonable fees; for example, Bitwise charges 0.20%, VanEck lists a price of 0.25%, and ARK Invest charges 0.21%. Instead of being charged to clients directly, fees for exchange-traded funds (ETFs) are subtracted from the return that investors get from the ETFs.
The fund has amassed almost $2 billion in assets under management (AUM), putting it in third place among the 600+ ETFs that have debuted in the last year in terms of asset gathering. Nate Geraci, president of ETF Store, thinks that IBIT will soon surpass all of them.
As of January 25th, Fidelity’s Wise Origin Bitcoin Fund (FBTC) had slightly under 44,000 bitcoin, making it the probable next fund to surpass the $2 billion threshold.
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Source: https://thenewscrypto.com/blackrocks-spot-bitcoin-etf-surpasses-2-billion-aum-milestone/