The iShares Bitcoin Trust by BlackRock has reached a record level of assets under management, standing out amid the unstable situation in the Bitcoin market.
Record Assets of iShares Bitcoin Trust
The iShares Bitcoin Trust (IBIT) by BlackRock has reached a record of $91.06 billion in assets under management. According to the latest market data, total net inflows to IBIT reached $58.04 billion as of August 13, highlighting sustained investor interest. On the same day, the fund closed at $69.84 per share, trading 0.57% above its net asset value.
Bitcoin Price Drop and Consequences
IBIT's record coincided with a turbulent week for Bitcoin. BTC reached a record high of $124,000, driven by expectations of a 25 basis point cut in the U.S. Federal Reserve's interest rates. However, hotter-than-expected U.S. Producer Price Index (PPI) data disappointed the market, triggering a rapid sell-off. Within minutes, Bitcoin fell below $118,000, resulting in over $1 billion in total liquidations.
Investment Resilience of IBIT
Despite the price shock, the investor base of IBIT remained resilient. Many observers view the price drop as a buying opportunity. Analysts note that long-term holders of IBIT appear less influenced by short-term market swings compared to other ETF investors.
BlackRock’s iShares Bitcoin Trust continues to dominate the ETF market despite the volatility in cryptocurrency values, showing sustained interest from investors.
