iShares Bitcoin Trust (IBIT) has become the most beloved spot Bitcoin ETF in the market today. Its total assets have jumped to over $17 billion since January, making it one of the fastest-growing funds in the market.
IBIT is the second-biggest Bitcoin ETF after GBTC
The fund is also highly traded. Data on its website shows that the daily volume on April 23rd stood at over 17.5 million coins. The 30-day average was over 39 million coins, making it highly liquid.
Most investors prefer the IBIT ETF because of its commission waver, which it implemented earlier this year. Also, they like Blackrock’s track record in the ETF industry, where it holds trillions in assets.
IBIT and other spot ETFs give investors exposure to the Bitcoin market that is growing by the day. The benefit of investing in the fund is that it is easier to own an ETF than Bitcoin itself. Also, you don’t need to manage your Bitcoin keys if you are using a digital wallet like MetaMask.
IBLK ETF is another crypto ETF to watch
The iShares Blockchain and Tech ETF (IBLK) is another ETF to consider if you want exposure to the cryptocurrency industry. It is a small fund with less than $20 million in assets under management.
The fund invests in 36 companies that provide solutions in the cryptocurrency industry. Most of these companies are in the Bitcoin mining sector. The biggest ones are the likes of CleanSpark, Coinbase, Marathon Digital, Riot Platforms, and Cipher Mining.
IBLK ETF also has exposure to other traditional companies. For example, it has a stake in Nvidia, a company that provides chips that power mining equipment.
It also owns Mastercard, the second-biggest card company in the world. Mastercard has made several investments in the blockchain industry. For example, it powers most cryptocurrency cards in the market.
The fund also owns IBM, one of the biggest technology companies in the world. IBM provides blockchain solutions to companies like Home Depot, Renault, and Lygone.
The other notable companies in the fund are Block, the parent company of Square, NTT Data, Robinhood, and DXC Technology.
The key challenge with IBLK is that it is not a cheap ETF to own since it has an expense ratio of 0.47%. In contrast, a popular ETF like the SPDR S&P 500 ETF has a ratio of just 0.06%.
Still, despite this, the fund has done well. It has risen by over 81% in the pas 12 months while the S&P 500 index is up by just 22%. This year, the fund has jumped by 5%, lagging the S&P 500, which is up by 6.3%.
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