Considering how much money has been flowing since the launch of its new iShares Bitcoin Trust ETF (exchange-traded fund), BlackRock just made it the focal point of its official website. The world’s largest asset management also rolled out a new infomercial for the new crypto-based financial instrument.
BlackRock Website Focuses on IBIT
As reported earlier, BlackRock just accumulated 11,439 BTC worth $497 million during the first two days of spot Bitcoin ETF trading in the US. With that kind of money it’s making, it comes as no surprise that the company is now making iShares Bitcoin Trust ETF (IBIT) the highlight of its official website.
The slogan of the campaign centers on how it makes Bitcoin access is made easy via a familiar and commonly traded investment vehicle, an ETF.
New Spot Bitcoin ETF Ad
Complementing the push of BlackRock in the new niche of the US market is a new ad promoting the features of IBIT. Jay Jacobs, the company’s US Head of Thematics and Alternative ETFs, explains in the infomercial the implications of their spot Bitcoin ETF in the future of finance.
First of all, the platform lets investors access Bitcoin within a traditional brokerage account. This keeps them out of the complexities associated with setting up and managing cryptocurrency wallets or entrusting their assets to crypto exchanges.
Another advantage offered by IBIT is convenience. Customers are freed of the burden of holding their Bitcoin directly. It also exempts them from the costly BTC transaction fees and tax reporting requirements of the Internal Revenue Service (IRS).
Furthermore, it leverages BlackRock’s status as the world’s largest asset management firm. The institution has been in the industry since 1988 and has grown into a powerhouse with $9.1 trillion of assets under management (AUM) as of its Q3 2023 report.
Vanguard’s Adversarial Stance on Spot Bitcoin ETF
Despite BlackRock’s success in the aftermath of the US Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETFs, the new asset class was surprisingly met with resistance by Vanguard. The Vanguard Group happens to be the 9.04% owner of BlackRock based on Capital.com.
Hours during the countdown of the game-changing moment in Wall Street, Vanguard’s spokesperson fired up a series of rants against spot Bitcoin ETFs. The representative pointed out the weak investment case and lack of intrinsic value of these new assets. The company’s mouthpiece emphasized the high volatility of the cryptos they are related to in questioning their capability to generate real returns.
BlackRock CEO Larry Fink, however, displayed his confidence in their new product, piping it as a “digital gold.” Moreover, he hyped it as having great potential to be a long-term hedge against the economic uncertainty stirred by the government.