While exchange-traded funds (ETFs) may never exactly track the cryptocurrencies they follow, BlackRock’s IBIT itcoin">Bitcoin">itcoin">Bitcoin fund is proving resilient. Despite itcoin">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 itcoin">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 itcoin">Bitcoin itself is inevitable given these products only provide exposure rather than direct ownership. But IBIT’s early relative strength against both itcoin">Bitcoin and competing options is noteworthy for barely four days of trading.
BITO, the largest itcoin">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 itcoin">Bitcoin ETF on falling markets underscores investor preference for BlackRock’s reputable brand.
