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CFDs come with a high risk of losing money rapidly due to leverage. 71% of accounts lose money when trading CFDs with this provider. You should understand how CFDs work and consider if you can take the risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

79% of retail investor accounts lose money when trading CFDs with this provider.

Crypto Trading

BlackRock Bitcoin ETF: What is it?

BlackRocks with Bitcoins crypto coins, representing BlackRock Bitcoin ETF.

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Bitcoin ETFs got approved on January 11, 2024, and this paved the way for big institutions like BlackRock to enter the crypto space. One of the most notable developments is the BlackRock Bitcoin ETF (IBIT), which allows investors to gain exposure to Bitcoin without directly buying or storing the cryptocurrency.

What is BlackRock Bitcoin ETF (IBIT)?

BlackRock Bitcoin ETF (IBIT) is a financial product that lets you invest in Bitcoin through the stock market without buying actual Bitcoin. IBIT is managed by BlackRock, a major investment company. This ETF holds real Bitcoin and lets you buy and sell shares on the US100 exchange, just like regular stocks. The price of IBIT goes up and down with the Bitcoin price, so you can gain or lose money based on Bitcoin's market performance. It provides a straightforward and regulated way for investors to gain exposure to Bitcoin’s value.

BlackRock Bitcoin ETF approval date

The BlackRock Bitcoin ETF, officially named the iShares Bitcoin Trust (IBIT), was approved by the U.S. Securities and Exchange Commission (SEC) on January 11, 2024, paving the way for institutional investors to access Bitcoin through a regulated financial product.

BlackRock Bitcoin holdings

As of July 8, 2024, BlackRock holds $17,484,375,142.38 worth of Bitcoins, which is about 310,470 Bitcoins. BlackRock manages these Bitcoins through their iShares Bitcoin Trust (IBIT) ETF. 

Source: blackrock.com

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How does BlackRock Bitcoin ETF differ from other spot Bitcoin ETFs?

BlackRock’s iShares Bitcoin Trust (IBIT) is different from other spot Bitcoin ETFs in several ways. One major difference is that IBIT was among the first to achieve over $1 billion in trading volume, showing high investor interest and making it easier to trade. BlackRock’s strong reputation also helps attract more investors compared to newer ETFs.

Additionally, IBIT offers lower management fees than some other spot Bitcoin ETFs, like Grayscale’s Bitcoin Trust, making it a more affordable choice for investors. IBIT uses Coinbase Custody Trust Company for secure storage, which ensures the Bitcoin is stored safely and managed properly. Other ETFs might use different custodians or have different methods for managing their Bitcoin assets.

Source: theblock.co

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Difference between Bitcoin ETF and Bitcoin CFDs

Bitcoin ETFs (Exchange-Traded Funds) and Bitcoin CFDs (Contracts for Difference) offer different ways to engage with Bitcoin’s price movements. A Bitcoin ETF as we’ve seen, allows you to buy shares that represent ownership of Bitcoin held by a fund like BlackRock. This means you gain exposure to Bitcoin’s price without directly owning the cryptocurrency. ETFs are traded on stock exchanges and are regulated, which can provide a more stable and secure investment experience.

In contrast, Bitcoin CFDs, like those offered by Skilling, let you speculate on Bitcoin’s price changes without owning Bitcoin itself. With CFDs, you enter a contract to trade based on whether you think the price of Bitcoin will rise or fall. Skilling allows you to trade Bitcoin CFDs with features like leverage, which means you can control a larger position with a smaller amount of money. This can lead to higher potential profits, but also losses and costs, such as spreads and overnight financing fees.

Summary

While BlackRock's Bitcoin ETF (IBIT) offers a secure, regulated way to invest in Bitcoin by holding actual Bitcoin assets, it's important to remember that all investments come with risks. So, proper risk management is crucial.

Past performance does not guarantee or predict future performance. This article is offered for general information and does not constitute investment advice. Please be informed that currently, Skilling is only offering CFDs.

No commissions, no markups.
15/07 - 19/07
TSLA.US: 00:00 - 21:00 UTC
MANAUSD: 13:30 - 20:00 UTC
Trade now
Capitalise on volatility in cryptocurrency markets
Take a position on moving cryptocurrency prices. Never miss an opportunity.
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