Key Points

• Larry Fink, CEO of BlackRock, expresses surprise and optimism regarding the performance of the company's Bitcoin ETF, IBIT.
• IBIT has accumulated $13.5 billion in flows within the first 11 weeks, exceeding expectations.

Larry Fink, BlackRock's CEO, shared his positive surprise at the success of the firm's Bitcoin Exchange-Traded Fund (ETF), IBIT.

During a recent interview, Fink disclosed his positive outlook on the long-term potential of Bitcoin.

Impressive Performance of IBIT

Fink mentioned that IBIT has set a new record as the fastest-growing ETF in history.

The iShares Bitcoin Trust (IBIT) has performed exceptionally well during its first 11 weeks of trading, surpassing Fink's initial projections.

Within its initial trading period, IBIT generated $13.5 billion in flows, reaching a daily peak of $849 million on March 12, as per Farside Investors.

Fink expressed contentment with the market's enhanced liquidity and clarity, which he attributed to an unforeseen retail demand.

IBIT’s Position in the Market

Presently, IBIT holds $17.1 billion in Bitcoin, according to BitMEX Research.

It only took the ETF two months to hit the $10 billion milestone, a feat that the first gold ETF required two years to accomplish.

Among the sanctioned ETFs, IBIT ranks second in Bitcoin ownership, following the Grayscale Bitcoin Trust, which has $23.6 billion in BTC.

Excluding Grayscale, the nine Bitcoin ETF issuers hold over $34.1 billion in Bitcoin.

Despite this prosperity, certain market specialists anticipate that a few Bitcoin ETF issuers might eventually cease operations due to inadequate profits.

In reaction to this trend, multiple ETF issuers have lowered fees to compete with larger entities.

Nevertheless, these smaller issuers encounter considerable difficulties in this fiercely competitive market, according to Bloomberg ETF analyst Henry Jim.

On March 27, Hashdex received approval for its spot Bitcoin ETF, becoming the 11th firm to enter the competitive US market.