BlackRock US Head of iShares Product Rachel Aguirre joins Yahoo Finance in-studio to discuss the success of the firm's IBIT trust, commenting on its ability to expose traditional investors to digital assets.
"We've really seen a groundswell of interest coming from many directions," Aguirre says, adding: "We're the number one issuer, new issuer, both in terms of volume as well as flows."
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SEANA SMITH: Spot Bitcoin ETF products have seen inflows of more than $560 million. That was at the end of the trading day on Monday. This is all according to the latest data out from a Bloomberg ETF analyst, while the leader among the newly approved spot Bitcoin ETFs is BlackRock. That fund seeing over $270 million in inflows.
Let's talk a little bit more about that. For that we want to bring in Rachel Aguirre, a BlackRock's US head of iShares products. And Rachel, it's great to have you here. So just talk to us about what these last couple of weeks have been like, your reaction to some of that excitement, and the fact that it does seem to be cooling just a bit off of those very high elevated levels.
RACHEL AGUIRRE: Well, first of all, thank you so much for having me. It's great to be here with both of you. I mean, I will say by every measure, this launch has gone incredibly well. We've really seen a groundswell of interest coming from many directions.
When you look at volumes, when you look at flows, when you look at how the product itself is trading, the iShares Bitcoin Trust, what we like to refer to as IBIT, has traded more than three and a half billion. Since its launch just a little over a week ago, we've brought in more than $1.6 billion in flows. We're the number one issuer, new issuer both in terms of volume as well as flows.
When you look at the spreads, we're trading at a penny wide. This is exactly what you want to see. What we're here for is to provide investors access and that's exactly what we're doing.
BRAD SMITH: So what's next for BlackRock products? I mean, does this now clear the way for consideration of an Ethereum ETF as well?
RACHEL AGUIRRE: Well, it's really interesting and thank you for the question. It's a great question because this is really what innovation is all about. We are constantly thinking about what it is that our clients need, staying ahead of those needs. And so we're going to continue to do that.
We've been at the leading edge of innovation and we will continue to be as well. It doesn't follow a straight path. It involves risk. But that's what we're here for and that's what we love.
SEANA SMITH: I'm curious, Rachel, to get your perspective on the regulation conversation in terms of whether or not you think if we do get some sort of regulation, more regulation on crypto, on Bitcoin out of DC, is that something that you see as a driver there in terms of wider adoption surrounding crypto, surrounding Bitcoin? Is that a catalyst, do you think, for some of these investment vehicles?
RACHEL AGUIRRE: Well, I'll say a few things here. First, we welcome the developments that we've seen on the regulatory front. But let's be clear, it's been investor demand and it was investor demand that got Bitcoin ETFs over the line. It's really about providing access. And you know from a regulatory perspective, we welcome the developments that we've seen.
BRAD SMITH: Is Gary Gensler a friend or foe to the crypto community more broadly and filings that are set to go forward to bring more opportunity, more options for assets like these and to more traditional market landscape?
RACHEL AGUIRRE: Well, again, I'll go back to-- I'm not going to comment from a regulatory perspective, other to say-- other than to say that we welcome the developments that we've seen. You know we believe that there are three very tangible benefits that IBIT brings to investors. The first is access, as I mentioned. Investors can now hold IBIT right alongside their equities and bonds. That's bringing new transparency to investors.
The second is convenience. We all know the headaches that are associated with holding Bitcoin directly. Hot wallets, cold wallets, passwords, well, we're removing all of those burdens from investors and giving them a really convenient way to invest. And then the third is quality. We as the world's largest ETF provider, that same institutional grade technology, that same professional risk management that we bring to more than 1,300 ETFs around the globe, we're bringing to IBIT.
SEANA SMITH: Rachel, how has the conversation changed then amongst clients, amongst investors, do you think, since we did get the approval of this?
RACHEL AGUIRRE: Well, I will tell you, it's really interesting. Investors are on a journey. A few things that I'll say here.
First of all, Bitcoin is not for everyone and advisors certainly know that. And so we're really here to provide education. We're here to support our clients on their journey in terms of Bitcoin investment. I'll say another thing. Bitcoin is a new emerging asset class and it's one that exhibits very unique return and risk characteristics. And so it is a journey that investors are on right now to understand the you know utility of this new asset class in the context of a portfolio.
BRAD SMITH: Rachel Aguirre who is the BlackRock US head of iShares product. Thanks so much for taking the time here with us in studio.
