Ethereum

Bitcoin ETF

BlackRock

<h2 id="key-points">Key Points</h2>
<ul>
 <li>BlackRock’s Bitcoin ETF (IBIT) saw fluctuating inflows, while its Ethereum ETF (ETHA) recorded a healthy inflow of $4.9 million.</li>
 <li>Despite high risks, BlackRock’s whitepaper emphasizes Bitcoin’s unique position as a diversifier among major asset classes.</li>
</ul>
<p>BlackRock’s Bitcoin ETF, known as IBIT, saw a fluctuating trend in inflows. The latest update on September 18th reported no new inflows.</p>
<p>On the other hand, BlackRock’s Ethereum ETF, ETHA, witnessed a substantial inflow of $4.9 million during the same period, as reported by Farside Investors.</p>
<h2 id="performance-of-blackrock-s-etfs">Performance of Blackrock’s ETFs</h2>
<p>Despite these short-term fluctuations, the IBIT ETF has seen total inflows of $20.92 billion since its inception. This surpasses the cumulative inflows of $17.45 billion for all Bitcoin ETFs combined.</p>
<p>In comparison, ETHA has seen total inflows of $1.03 billion since its launch. The cumulative Ethereum ETF sector, however, has experienced a net outflow of $9.8 million.</p>
<p>These figures suggest that the lack of inflows for IBIT may be a temporary fluctuation, with potential for improvement in the near future.</p>
<h2 id="blackrock-s-view-on-bitcoin">Blackrock’s View on Bitcoin</h2>
<p>BlackRock has released a comprehensive whitepaper that explores Bitcoin’s unique role among major asset classes. The paper emphasizes Bitcoin’s position as a “diversifier,” contrasting it with traditional assets by highlighting its fleeting correlations with U.S. equities and USD interest rates.</p>
<p>The whitepaper also provides a detailed analysis of Bitcoin’s journey to a $1 trillion market capitalization. It reveals that Bitcoin outpaced all major asset classes in seven of the last ten years, delivering an impressive annualized return of over 100%.</p>
<p>The paper also emphasizes Bitcoin’s perceived insulation from global macroeconomic factors. It suggests that Bitcoin has emerged as a “flight to safety” during times of geopolitical uncertainty for some investors.</p>
<p>Furthermore, BlackRock argues that Bitcoin offers a hedge against potential U.S. dollar weakness, which could arise from the growing federal deficit.</p>
<h2 id="bitcoin-s-unique-characteristics">Bitcoin’s Unique Characteristics</h2>
<p>The whitepaper contrasts Bitcoin with U.S. equities by emphasizing Bitcoin’s continuous trading and near-instantaneous cash settlement. This enhances its liquidity during market stress.</p>
<p>Unlike traditional equities that are confined to standard trading hours, Bitcoin operates 24/7. This makes Bitcoin a highly saleable asset in times of financial uncertainty, offering an advantage over traditional assets that are less accessible during such periods.</p>
<p>However, the whitepaper concludes that Bitcoin remains a high-risk asset. Bitcoin’s risks are distinct from those of traditional investment assets, and its behavior and risk factors cannot be easily categorized within simple “risk on” versus “risk off” frameworks.</p>
<p>All in all, Bitcoin’s unique characteristics make it a special case, showing that traditional risk assessment models may not fully capture its complexities.</p>

Unraveling BlackRock’s Bitcoin Whitepaper: Unmasking the Nature of BTC

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CoinEagle.com

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