BlackRock recently introduced the IBIT Bitcoin exchange-traded fund (ETF), a significant step in integrating cryptocurrencies with mainstream finance. Rachel Aguirre of BlackRock’s iShares US unit highlighted the ETF’s early success in a Yahoo Finance interview, noting a substantial $3 billion trading volume in its first week.
Following the launch of the IBIT ETF, there was a noticeable increase in trading volume and investor interest, with over $1.6 billion flowing into the fund, indicating a strong desire to invest in cryptocurrencies.
Aguirre emphasized the importance of easy access to Bitcoin and identified the IBIT ETF as a key component of this strategy. To support the ETF, BlackRock acquired a significant amount of Bitcoin, totaling 16,361 BTC, reaffirming its confidence in the future of cryptocurrencies.
Meanwhile, Bitcoin’s price has continued to experience notable fluctuations. Since the launch of US-based Bitcoin ETFs, including BlackRock’s IBIT, Bitcoin prices have generally declined, recently showing a rise to $40,527 after dropping below $39,000.
This performance hints at a potential upward trend, with the possibility of a rally to $42,000 if current trends continue. The approval process for Bitcoin ETFs has been tumultuous, with price volatility and typical post-approval sell-offs. However, the recent 20% drop from the peak of $49,021 on the day ETFs began trading is still considered mild compared to past corrections, suggesting a maturing Bitcoin market less affected by events.