A new analysis claims that 75% of investors who bought IBIT, BlackRock’s Bitcoin ETF, had never purchased any of the company’s products beforehand. Additionally, more than one-quarter of these buyers then bought another BlackRock ETF.
These trends highlight IBIT’s ongoing relevance, even as the ETF market trended more towards Ethereum and increased interest in altcoins. The Bitcoin ETF attracts new customers and directs them to BlackRock’s full portfolio, a valuable service.
New Data on BlackRock’s IBIT
SponsoredIBIT, BlackRock’s Bitcoin ETF, was described as the “greatest launch in stock exchange history,” shattering records and earning huge revenues.
However, the firm’s Ethereum-based ETF surpassed IBIT last week, with a surprise upset that raised questions about the market sector. A new piece of data has helped quantify IBIT’s continuing long-term potential:
These IBIT statistics came from BlackRock’s Investor Day events in June. Although the full report (other than these excerpts) is exclusive to a Bloomberg terminal, a slide deck with some relevant information has been made public.
In short, IBIT has acted as a customer magnet for BlackRock. Over the last few months, Bitcoin ETFs have represented the overwhelming majority of crypto fund investments. IBIT is the clear standout in this market sector, and more than a quarter of retail IBIT buyers move on to invest in the firm’s other ETF products.
This trend could help power long-term longevity for BlackRock’s ETF portfolio. Ethereum ETFs have surged throughout July while BTC inflows diminished, and corporate investors are heavily diversifying their portfolios to include other altcoins.
This phenomenon struck particularly close to home for BlackRock, as a key IBIT pioneer left the firm to take a position at an ETH-focused treasury company. Sure, IBIT generates huge fee revenues, but products need to constantly innovate to stay relevant.
However, it seems like this “customer magnet” angle can provide a great degree of long-term relevance.
