BlackRock Inc. (BLK) now earns more from its Bitcoin (BTC-USD) exchange-traded funds than from any other product line. The update came from a senior firm leader at an event in São Paulo. The leader said the shift occurred as demand for the iShares Bitcoin Trust (IBIT) and its Brazil pair skyrocketed. The two funds have close to $100 billion in assets, which is high for a new asset class.
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Moreover, the U.S. spot Bitcoin fund reached $70 billion in less than one year. It drew more net inflows than any new fund in the past ten years. As a result, fee income rose to an estimated $245 million per year by this past October. The firm also added more shares of the fund to its own income unit, which showed steady trust in the product.
Meanwhile, BLK shares rose slightly on Friday, closing at $1,047.30.
Shifts in Fund Flows and Price Moves
However, in November, flows changed. The fund had net outflows of about $2.34 billion. The largest daily exit came on November 18, when clients pulled $523 million. Even so, a firm leader said the moves were typical for a fund that gives quick access to cash. He stated that the swings tend to align with the clients’ habits when the price of Bitcoin drops.
Bitcoin traded near $90,841 on November 30. The coin fell from its October high of more than $110,000 but climbed back from its mid-November lows. As a result, clients in the main fund held a gain of about $3.2 billion at the end of the month. The rise also helped ease concern around the late-month exits, since many clients saw gains return as the price moved up.
Is BLK Stock a Buy?
BlackRock enjoys the Street’s analysts’ backing with a Strong Buy consensus rating. The average BLK stock price target is $1,355.91, implying a 29.47% upside from the current price.
