By Finbold | Created at 2025-01-13 16:34:08 | Updated at 2025-01-14 10:11:10
17 hours ago
Once a relatively fringe asset, Bitcoin (BTC), the premier cryptocurrency, has steadily garnered mainstream support. However, a crucial turning point was reached with the approval of the first Bitcoin exchange-traded funds (ETFs) in early 2024. This new level of institutional support and increased accessibility provided the leading digital asset with a strong level of support
Although still in its early days, the mainstream availability of cryptocurrencies is a critical factor — one which could propel it to become a mainline asset class just like stocks or bonds.
At present, it seems like 2025 is off to a good start in this regard — on January 13, BlackRock (NYSE: BLK), the world’s largest asset manager, which has roughly $11.5 trillion in AUM (assets under management) launched a new BTC ETF in the crucial Canadian market.
BlackRock’s iShares Bitcoin ETF is now trading under the IBIT ticker, with U.S. dollar-denominated units trading under the IBIT.U symbol on the CBOE exchange.
BlackRock gives BTC a vote of confidence in the middle of a downturn
Even accounting for increased institutional adoption, Bitcoin has remained a volatile asset. While more stable than smaller market-cap cryptocurrencies, BTC is still prone to severe price movements — however, it would appear that this factor was not enough to dissuade BlackRock from entering the market.
At press time, a single Bitcoin was changing hands at $92,710, after marking a 9.23% drop on the weekly chart, and at risk of dropping below the crucial $90,000 support level. The sudden drop is attributed to profit-taking and macroeconomic factors unfavorable to speculative assets — although BlackRock’s new fund certainly suggests that institutional investors are bullish in the long run.
BTC price 1-week chart. Source: FinboldBlackRock’s new ETF will primarily invest in the iShares Bitcoin Trust ETF (NASDAQ: IBIT). Since the start of 2024, IBIT has provided a 111.93% return — at press time, a single unit of the fund was trading at $52.39. It stands to reason that this new listing will mirror its performance almost completely.
IBIT price 1-year chart. Source: FinboldThe fund’s price action follows Bitcoin closely — although it experienced a slightly lower drop than the cryptocurrency did in the last 7 days, marking a 7.87% drop compared to BTC’s 9.23%.
Beyond those impressive returns, the fund’s primary draw is ease of use — as it provides access to the leading digital cryptocurrency in a simple, straightforward way.
Although Bitcoin’s recent trajectory has been quite negative, numerous experts are confident that this is simply a temporary setback — one that is to be followed by a renewed rally that would certainly bode well for BlackRock’s new fund.
Featured image via Shutterstock
