While exchange-traded funds (ETFs) may never exactly track the cryptocurrencies they follow, BlackRock’s IBIT Bitcoin">Bitcoin fund is proving resilient. Despite Bitcoin falling over 10% since Thursday’s simultaneous launch, IBIT has dropped less at 8.9%.
In fact, IBIT is declining the least of any new spot Bitcoin ETF including those from Valkyrie and Franklin Templeton. With ETFs valued partly on their own supply-demand dynamics, IBIT’s smaller losses could signal investors favor it over rivals.
Some difference between ETF valuations and Bitcoin itself is inevitable given these products only provide exposure rather than direct ownership. But IBIT’s early relative strength against both Bitcoin and competing options is noteworthy for barely four days of trading.
BITO, the largest Bitcoin futures ETF, mirrors IBIT’s performance, cementing that spot ETFs can track underlying assets properly. While volatility remains high across crypto, IBIT’s emergence as the strongest Bitcoin ETF on falling markets underscores investor preference for BlackRock’s reputable brand.
