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IBIT becomes the most popular ETF at BlackRock, poised to earn tens of millions of dollars in a year.

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IBIT becomes the most popular ETF at BlackRock, poised to earn tens of millions of dollars in a year.

According to data provided by Bloomberg ETF analyst Eric Balchunas, the iShares Bitcoin Spot ETF (IBIT) currently accounts for more than half of BlackRock's net flows year-to-date, and is double the size of the other 420 ETFs. BlackRock's diversified investments and high market sensitivity have brought huge opportunities in this new market.

BlackRock Diversifies Investments with High Market Sensitivity

Although Vanguard is known as the inventor of ETFs, BlackRock slightly edges out Vanguard in overall market share. During the recent frenzy of Bitcoin spot ETFs, Vanguard also chose to strengthen its investment policy in "non-cryptocurrency" assets.

Why not launch a Bitcoin ETF? Vanguard explains: it is an immature, speculative asset with no intrinsic value.

Analysts explain why BlackRock is the only company able to keep pace with Vanguard Group. This is because BlackRock's investment scope is highly diversified, constantly seeking new sources of growth to supplement its core business. This is also the reason they have turned to Bitcoin. The chart below shows the market share of issuers divided by asset class, demonstrating BlackRock's diversification. It has a 30% share in commodity ETFs, and a 14.1% share in thematic categories, while Vanguard has not invested in either.

Source: Bloomberg

The frenzy of Bitcoin spot ETFs was also driven by BlackRock, bringing in at least $24.6 billion in capital inflows to the market, excluding Grayscale GBTC.

Bitcoin ETF Brings Lucrative Revenue to BlackRock

Balchunas also stated that BlackRock's IBIT and Fidelity's FBTC have set a record of 49 consecutive days of inflows, a feat previously achieved by only 30 ETFs.

What's even more remarkable is that IBIT currently accounts for over half of BlackRock's net flows since the beginning of the year, doubling the flows of the other 420 ETFs. FBTC has an even greater impact within the company, representing 70% of Fidelity's flows since the beginning of the year, five times more than any other ETF.

According to BlackRock's 2023 annual report, BlackRock had net asset inflows of $288.7 billion last year, while IBIT has brought in $13.3 billion in just over two months. With an expense ratio of 0.12%, and assets under management of $15.8 billion to date, this could generate $19 million in annual revenue. Regardless of whether Bitcoin goes up or down, BlackRock remains the biggest winner!