Currently, Bitcoin has reached above $108,000 amid low trading activity, raising caution among traders. Meanwhile, BlackRock's iShares Bitcoin ETF shows high profitability, surpassing IVV.
Bitcoin Hits $108,000
Bitcoin is currently trading at $108,449.99, marking a 1.00% increase in the last 24 hours. The price peaked at $108,484.00 and hit a low of $107,084.15. However, data from Binance shows that the daily BTC/USDT trading volume is just $479.32 million, an unusually low figure that raises skepticism about the sustainability of this rally.
IBIT Surpasses IVV in Revenue
BlackRock's iShares Bitcoin ETF (IBIT) is now generating more annual revenue than its flagship IVV ETF. According to Nate Geraci, IBIT brings in $186 million annually, exceeding IVV's $183 million, despite IVV's significantly larger $609 billion assets under management. IBIT charges a 25 basis point fee on $75 billion in assets, securing its top revenue position.
Declining Volatility Attracts Institutional Investors
ETF analyst Eric Balchunas reported a sharp drop in IBIT's volatility over the past year. Previously, IBIT was 5.7 times more volatile than the S&P 500, but this has now decreased to just over 1. The reduced volatility may attract more institutional investors who prefer lower risk profiles.
With Bitcoin's rising price and the increasing profitability of BlackRock's iShares Bitcoin ETF, the crypto market landscape is rapidly changing. The declining volatility of IBIT may also indicate a growing interest from institutional investors in cryptocurrencies.
