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.
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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.
The iShares Bitcoin ETF has provided stellar returns thus far
BlackRock’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.
The 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.
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