Bitcoin surges 1.00% to $108,449.99 as BlackRock ETF tops flagship fund in revenue

Bitcoin has surged past the $108,000 mark, reaching $108,449.99, marking a 1.00% increase over the past 24 hours. The cryptocurrency's price peaked at an intraday high of $108,484.00 and dipped to a low of $107,084.15. However, the rally has been met with caution due to unusually low trading volume, with daily BTC/USDT spot volume on Binance hovering just below $500 million, at $479.32 million. This low volume has raised concerns about the sustainability of the rally, with some traders suggesting it could be a trap for latecomers, especially during periods of low liquidity.

Despite the caution, Bitcoin's recent performance has had a significant impact on the broader financial landscape. BlackRock’s iShares Bitcoin ETF (IBIT) has now surpassed the firm’s flagship IVV in annual fee revenue. IBIT generates $186 million annually, outpacing IVV’s $183 million despite IVV’s much larger $609 billion in assets under management (AUM). IBIT charges a 25 basis point fee on $75 billion in assets, which has helped it top the revenue chart. This shift highlights the growing institutional interest in Bitcoin and the potential for further crypto-linked products from major financial institutions.

The declining volatility of IBIT has also made it more attractive to institutional investors. Over the past year, IBIT’s volatility has decreased significantly, from being 5.7 times more volatile than the S&P 500 to just over 1. This reduced volatility aligns IBIT’s risk profile more closely with traditional stock market investments, making it a more appealing option for risk-averse institutional investors. As a result, analysts believe that BlackRock may explore further crypto-linked products, including tokenized assets or blockchain-based financial instruments, as part of its broader asset management strategy.

The sustained institutional participation in Bitcoin is evident through frequent Bitcoin flows between BlackRock wallets and Coinbase Prime. Over the past 48 hours, multiple transfers between 50 and 300 BTC were recorded, indicating high-frequency trading activity and continued institutional interest in the cryptocurrency. This trend suggests that Bitcoin’s role in the financial ecosystem is becoming increasingly significant, with major institutions like BlackRock playing a pivotal role in its adoption and integration into traditional financial markets.