Latest news with #IBIT


Arabian Post
5 hours ago
- Business
- Arabian Post
Bitcoin ETF Fees Eclipse S&P 500 For First Time
BlackRock's iShares Bitcoin Trust has overtaken its flagship S&P 500 ETF, IVV, in annual fee revenue, marking a significant shift in investor interest. IBIT now generates approximately $187.2 million a year, edging ahead of IVV's $187.1 million—remarkable given IBIT's substantially smaller asset base and higher fees. Since launching in January 2024, IBIT has attracted roughly $52 billion in net inflows—nearly 96% of all capital entering U.S. spot Bitcoin ETFs—and now accounts for more than 55% of the category's assets. Its success has propelled assets under management to around $72–75 billion, with the fund achieving the fastest-ever climb to $70 billion in just 341 trading days. The rapid accumulation reflects shifting institutional sentiment. Analysts note that investors are increasingly willing to pay premium fees—IBIT charges 0.25% versus IVV's mere 0.03%—for access to Bitcoin exposure within trusted regulated vehicles. Nate Geraci, president of the ETF Store, said the milestone 'reflects both surging investor demand for Bitcoin and significant fee compression in core equity exposure'. ADVERTISEMENT While fee revenue for IBIT now tops IVV, critics caution that underlying volatility in Bitcoin has diminished, bringing it closer to traditional equity benchmarks. ETF analyst Eric Balchunas noted that IBIT's volatility—once over five times that of equities—has softened significantly, attributing this partly to institutional scale and maturing market dynamics. IBIT is also directing the vast majority of new capital entering spot Bitcoin ETFs. Over the past 15 trading days, U.S. spot Bitcoin ETFs have drawn nearly $5 billion in inflows; IBIT alone captured more than 80% of this flow, including $112 million on the final trading day of June. Its individual inflow streak totalled $3.8 billion before plateauing. Despite its dominance, IBIT has not been immune to market fluctuations. Bitcoin-related ETFs experienced a $342 million outflow in a single day, ending a 15-day positive run. That pause included IBIT seeing no inflows that day, although analysts like Valentin Fournier at BRN Lead Research cautioned it may reflect a temporary cooldown rather than a shift in sentiment. BlackRock's success with IBIT is emblematic of broader trends identified by financial research. According to S&P Global, appetite for digitally‑focused funds remains robust, particularly where institutional frameworks offer clarity and accessibility. The Financial Times highlighted that active ETFs—especially crypto and options‑focused products—are capturing disproportionate fee income relative to passive counterparts, driven by higher demand and pricing flexibility. Regulatory stability since January 2024 has facilitated IBIT's ascent, making it easier for large-scale investors to allocate to cryptocurrency via mainstream platforms. This institutional flow has, in turn, helped reduce price volatility in Bitcoin itself, narrowing the gap with traditional ETFs. Yet questions persist about longevity. IBIT's future depends on sustaining investor interest amid macroeconomic shifts and evolving competition. Emerging Bitcoin ETFs from competitors like Fidelity's FBTC and Ark Invest's ARKB are gaining attention, though they trail IBIT significantly. Institutional scrutiny also remains vigilant, focused on fund liquidity, asset custody, and regulatory compliance. BlackRock is expanding its digital asset strategy beyond the U.S., with plans to introduce a bitcoin ETF in Europe, potentially domiciled in Switzerland, contingent on MiCA framework compliance. BlackRock's benchmark S&P 500 ETF, IVV, retains its massive $600+ billion in assets. Though still the industry cornerstone, its fee income has been outstripped for the first time—by a product founded on the dynamic, historically volatile Bitcoin market. The shift underscores a pivotal moment in ETF evolution, as Bitcoin transitions from niche digital asset to mainstream portfolio inclusion.


Business Upturn
6 days ago
- Business
- Business Upturn
BlackRock® Canada Announces Risk Rating Changes, Annual Management Fee Reductions and Commencement of Securities Lending Transactions
TORONTO, June 26, 2025 (GLOBE NEWSWIRE) — BlackRock Asset Management Canada Limited ('BlackRock Canada'), an indirect, wholly-owned subsidiary of BlackRock, Inc. ('BlackRock') (NYSE:BLK) today announced updates to the investment risk ratings of certain iShares exchange-traded funds ('iShares ETFs'), a reduction to the annual management fees of certain iShares ETFs, and the commencement of securities lending transactions of certain iShares ETFs, as further described below. Risk Rating Changes BlackRock Canada announces updated investment risk ratings of the iShares ETFs listed below, effective as of June 26, 2025: iShares ETF Name Ticker Previous Risk Rating Updated Risk Rating iShares Core MSCI US Quality Dividend Index ETF(1) XDU Medium to Low Medium iShares Japan Fundamental Index Fund (CAD-Hedged) CJP Medium to High Medium iShares US Fundamental Index ETF(2) CLU Medium Medium to High (1) This investment risk rating change only applies to the Canadian dollar units (XDU) and not to the U.S. dollar units (XDU.U). (2) This investment risk rating change only applies to the hedged units (CLU) and not to the non-hedged units (CLU.C). Annual Management Fee Reductions BlackRock Canada has reduced the annual management fees of the iShares ETFs listed below, effective as of July 2, 2025: iShares ETF Name Ticker Current Management Fee New Management Fee iShares 0-5 TIPS Bond Index ETF XSTP, XSTP.U 0.15% 0.10% iShares 0-5 TIPS Bond Index ETF (CAD-Hedged) XSTH 0.15% 0.10% Securities Lending Transactions BlackRock Canada also announces that it may engage in securities lending transactions (the 'Transactions') from time to time for iShares Bitcoin ETF ('IBIT') in compliance with applicable securities laws. This is a standard practice for many Canadian iShares ETFs. BlackRock Canada is issuing this announcement to provide 60 days' prior written notice to unitholders of IBIT that IBIT may enter into the Transactions on or after August 25, 2025. The prospectus of IBIT dated June 26, 2025, discloses additional information regarding the Transactions, including the policies related to engaging in the Transactions and the related risks. About BlackRock BlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit About iShares iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1500+ exchange traded funds ('ETFs') and US$4.3 trillion in assets under management as of March 31, 2025, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock. iShares ETFs are managed by BlackRock Asset Management Canada Limited. Commissions, trailing commissions, management fees and expenses all may be associated with investing in iShares ETFs. Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ('S&P'). TSX is a registered trademark of TSX Inc. ('TSX'). All of the foregoing trademarks have been licensed to S&P Dow Jones Indices LLC and sublicensed for certain purposes to BlackRock Fund Advisors ('BFA'), which in turn has sub-licensed these marks to its affiliate, BlackRock on behalf of the applicable ETFs. The Index is a product of S&P Dow Jones Indices LLC, and has been licensed for use by BFA and by extension, BlackRock and the applicable ETFs. The ETFs are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, any of their respective affiliates (collectively known as 'S&P Dow Jones Indices') or TSX, or any of their respective affiliates. Neither S&P Dow Jones Indices nor TSX make any representations regarding the advisability of investing in the ETFs. MSCI is a trademark of MSCI, Inc. ('MSCI'). The ETFs are permitted to use the MSCI mark pursuant to a license agreement between MSCI and BlackRock Institutional Trust Company, N.A., relating to, among other things, the license granted to BlackRock Institutional Trust Company, N.A. to use the Index. BlackRock Institutional Trust Company, N.A. has sublicensed the use of this trademark to BlackRock. The ETF is not sponsored, endorsed, sold or promoted by MSCI and MSCI makes no representation, condition or warranty regarding the advisability of investing in the ETF. ©2025 BlackRock Asset Management Canada Limited. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. Used with permission. Contact for Media:Sydney Punchard Email: [email protected]
Yahoo
25-06-2025
- Business
- Yahoo
Trump Crypto ETF Moves One Step Closer to Approval
A crypto ETF, which the social media and technology company controlled by President Donald Trump is hoping to launch, has moved a step closer to creation. The New York Stock Exchange has sought permission from the Securities and Exchange Commission to change a rule that would permit Trump Media and Technology Group Corp. (DJT) to list the exchange-traded fund. In a filing Tuesday that outlines the proposed fund's currency custodians and price determination, the NYSE said the change will 'prevent fraudulent and manipulative acts.' Trump Media last week filed to issue the Truth Social Bitcoin and Ethereum ETF, a combined Bitcoin and Ethereum exchange-traded fund. The company has also proposed a separate Bitcoin ETF, the Truth Social Bitcoin ETF, and a $2.5 billion fundraise from institutional investors to create one of the largest Bitcoin treasury allocations by a public company. The filing comes amid price jumps in both Bitcoin and Ether, the two biggest cryptocurrencies by market capitalization. President Trump, whose reelection campaign was supported with contributions from crypto industry heavyweights, has anointed himself the crypto president and supported pro-industry moves like creating a U.S. Bitcoin reserve. Industry supporters hold key positions in the Trump administration, including Paul Atkins, who, as SEC chair, would have ultimate oversight over the ETF's approval. The proposed fund would hold both Bitcoin and the Ethereum network token, known as Ether, in a three-to-one ratio by value. The filing says the combined fund will function like the spot Bitcoin and spot Ether ETFs that began trading last year. Investors have poured billions into spot Bitcoin ETFs since their early 2024 launch, and the iShares Bitcoin Trust (IBIT) ranks as the fastest-growing ETF to ever hit the market. Bitcoin has jumped 15% this year, more than triple the 4.2% gain in the S&P 500 as measured by the Vanguard S&P 500 ETF (VOO). The iShares Ethereum Trust (ETHA) has dropped 27% this year but still has net inflows of $1.8 billion. DJT is 52% controlled by a trust owned by President Trump, according to a February filing. IBIT vs. ETHA—Source: FactSetPermalink | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-06-2025
- Business
- Yahoo
Take the Bite Out of Bitcoin's Volatility Using an Options Collar
These days it seems like Bitcoin (BTCUSD) is everywhere. Retail and institutional investors are snapping up coins, investing in companies that hold Bitcoin on their balance sheets, and trading ETFs. It seems the leading cryptocurrency by market capitalization is inescapable, which is both frightening and fascinating. Bitcoin is also incredibly volatile. The introduction of about a dozen ETFs that track the spot price of Bitcoin back in January 2024 has been a huge catalyst for crypto. The leader of that ETF pack is the one brought to market by Blackrock's iShares ETF unit, the behemoth of the managed investing world. Its Bitcoin ETF Trust (IBIT) has more than $70 billion in assets under management. 3 ETFs with Dividend Yields of 12% or Higher for Your Income Portfolio Dear Tesla Stock Fans, Mark Your Calendars for June 30 Nvidia Is Quickly Approaching a New Record High. Is It Too Late to Buy NVDA Stock? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. It also trades nearly $3 billion a day in volume. If we apply some quick math, that implies that the average IBIT investor holds that ETF for about 20 days. That's it. I can and do trade Bitcoin ETFs and many other funds and stocks. But in this case, I want to try to 'own' IBIT for a while. Several months to start, then maybe years. But that risk! This technical chart below is not the best-looking one I've seen lately. In fact, I get a very 'toppy' message from it. This makes it tough to open a position in IBIT with the intent to hold the fund for a longer time frame. I wanted to take the Bitcoin plunge, but I wanted to do it my way. I take a risk to make a high return, but I define my worst-case scenario up front. And since the options market has exploded in popularity and liquidity along with Bitcoin itself, I started looking into collaring it. As a refresher, a collar is where you buy a stock or ETF and accompany it with a pair of option contracts. One of them is a put purchase, which means for a set period of time, you can sell that underlying asset at a specific price. This is essentially the options market's version of an insurance policy. The other part of the collar is the 'covered call' which simply means that I take in some cash now in exchange for the obligation to sell the stock or ETF if it crosses above a specific price level before that option's time runs out ('expiration date'). I have owned an IBIT collar for several weeks, but for this article, I'm replicating my process for educational purposes. This table from Barchart, like most options tables, is quite busy. That's because there are so many options to choose from, literally and figuratively. Here's where to focus: IBIT traded for about $60 a share at this snapshot in time. One option contract represents 100 shares of IBIT, so to do this cleanly, I'd need to spend about $6,000 to buy the minimum amount of IBIT to complement that position with a collar. The options combination I picked out for this example is the one at the top of that table above. Both options expire on Dec. 19, 6 months from now. The call is struck at $75 and the put at $60. That's my range if I buy the put and sell the call. I bring in $3.90 for being willing to sell IBIT during the next 6 months at $75 a share. With the fund needing to appreciate 25% for that to be possible, I say, 'bring it on!' That's a high-class problem. It would cost me $7.70 to have the right to sell IBIT at $60 during the next 6 months. That said, if I were less risk-averse, if you look three rows further down, the puts struck at $55 cost only $5.30 a contract. Since each option contract relates to 100 shares of IBIT, that means the first example costs $770 for that protection. Or, I can pay only $530 for the $55 strike puts, but that means I might have to sell IBIT for $500 less than the original contract I mentioned above ($60-$55 times 100 shares). Let's sum this up, using that original example: It costs me about $60 a share for 100 IBIT shares. It costs me $7.70 a contract for the protection (puts). I receive $3.90 a contract for capping my upside (calls). The next options cost, in round numbers, is about $4 a share ($7.70-$3.90). So, my range of outcomes is $75-$4=$71 best case if called, and $60-$4=$56 is my worst case. Remember, IBIT was a $60 purchase in this example. So, that's $11 of upside, $4 of downside over 6 months. Nearly a 3:1 ratio. And that's nearly 20% IBIT upside in 6 months, versus less than 7% downside. For an ETF that was trading at $43 in April, I like this tradeoff. Because I can always trade around it. This is potentially the start of a longer-term position. We'll see. But the key here is that by using the flexibility of an option collar, we can potentially tame the volatility inherent in some high-flying assets, while also taming our own emotions related to the risk of investing. On the date of publication, Rob Isbitts had a position in: IBIT. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
18-06-2025
- Business
- Yahoo
BlackRock Looks to Take ETF Volume Crown from State Street
State Street Corp. (STT) is on track to lose its position as the world leader in ETF trading volume, as investors aggressively snap up BlackRock Inc. (BLK) funds, according to Bloomberg Intelligence. State Street, whose SPDR business is the third-largest U.S. ETF issuer by assets behind BlackRock's iShares and The Vanguard Group, controls 31% of U.S. exchange-traded fund trading volume, Bloomberg ETF Analyst Athanasios Psarofagis wrote. While rival BlackRock holds 25%, its share is growing faster thanks to trading in the iShares Bitcoin ETF Trust (IBIT), its spot Bitcoin fund, and the iShares Core S&P 500 ETF (IVV). Volume is critical in the ETF business where the three largest funds, the Vanguard S&P 500 ETF (VOO), the SPDR S&P 500 ETF Trust (SPY) and IVV charge rock-bottom fees and count on huge assets to generate income. The $607.4 billion SPY, which this year lost its title as the world's largest ETF to the $679.8 billion VOO, is the most expensive among the world's three biggest ETFs. 'BlackRock has steadily narrowed the gap and is on track to take the No. 1 spot,' Psarofagis wrote. VOO has become the largest ETF due to winning the most investor money this year, hauling in a net $80.9 billion while the other two big funds have had outflows. Still, SPY typically does more volume: Last week, 585 million shares traded, crushing VOO's 67.8 million and IVV's 66.8 million, according to FactSet data on IBIT, the fastest-growing ETF on record, had volume of 339.7 million shares last week. IBIT One-Month Price and Volume—Source: FactSet Volume overall has grown 'dramatically' in the past few years, and now about $13 trillion trades each quarter, Psarofagis wrote. The top 10 ETFs account for 44% of all volume and, while that's concentrated, it's actually broadened from a peak of 51%, he said. Analysts have speculated that IVV may soon surpass SPY to become the second-largest | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data