Cryptocurrency Information Bureau News: BlackRock's Bitcoin ETF IBIT, Mr. Michnick talks about the secret to its success! What is the reason for its rapid growth? #BitcoinETF #BlackRock #CryptocurrencyNews
Video explanation
Eh, Bitcoin is becoming more accessible? John explains the secret behind BlackRock's huge success with "IBIT"!
Hello everyone! This is John. Thank you for your continued support!
You may have been hearing the term "Bitcoin ETF" more and more recently in the news or on the Internet. In particular, IBIT, a Bitcoin ETF launched by BlackRock, a world-famous asset management company (a professional company that accepts and manages money), is attracting a lot of attention!
"Bitcoin seems complicated..." "What exactly is an ETF?"
Don't worry if you feel the same way! In today's blog, I, John, will explain this big news in an easy-to-understand way so that everyone can understand. Let's take a look together!
First of all, what is a Bitcoin ETF?
First, let's start with the basics!
- What is Bitcoin?
Bitcoin is like "digital money that can be used on the Internet." Unlike currency issued by countries such as yen or dollars (called legal tender), it is a new type of money that is not managed by a specific country or bank. - What are ETFs?
Next, "ETF." This is an acronym for "Exchange Traded Fund." It's a bit of a difficult name, isn't it?
For example,"A bento pack filled with a variety of side dishes"This lunch box contains, for example, a little bit of stock from company A, a little bit of stock from company B, and a little bit of gold, and you can buy it as one product.
What's special about this "Bento Pack (ETF)" is that anyone can easily buy and sell it on the stock exchange (a place where stocks are bought and sold), just like regular stocks.
In other words, "Bitcoin ETF"I mean,"Bento Pack for Investing in Bitcoin"It's something like that!
Until now, you may have thought that in order to buy Bitcoin you needed to open an account with a specialized cryptocurrency exchange (also known as a virtual currency exchange), which was a bit of a hassle.
However, thanks to the emergence of this Bitcoin ETF, it is now possible to indirectly invest in Bitcoin in the same way as buying stocks through the securities accounts we normally use. This is really convenient!
What kind of company is BlackRock, the global investment management company?
This time, the highly successful Bitcoin ETF "IBIT" is being offered by"BlackRock"This is a company called.
Some of you may be thinking, "I've never heard of BlackRock..." but this company is actually incredibly large.
BlackRock is one of the world's largest "asset management companies." In other words, they are a "group of the most professional money managers" that accepts huge amounts of money from individual investors, pension funds (organizations that save money to pay future pensions), insurance companies, and other entities around the world, and helps them increase the value of that money by investing it in stocks and bonds (which are like certificates issued when a country or company borrows money).
The fact that BlackRock, such a giant in the financial world, has launched a Bitcoin ETF is actually of huge significance.
This is because when a traditional and highly reliable financial institution like BlackRock handles Bitcoin-related products, it will encourage many people around the world, especially investors who have been cautious up until now, to realize that Bitcoin can be considered a legitimate investment. This gives Bitcoin a boost in social credibility!
Why is BlackRock's "IBIT" so popular?
Now, let's get to the main topic. Why is BlackRock's Bitcoin ETF "IBIT" so popular with so many investors and such a huge success?
Robert Mitnick, head of the digital assets division at BlackRock (assets that have value in a digital form, such as Bitcoin), explained the reasons in an interview with Bloomberg, a media outlet famous for its economic news. Let's summarize the main points!
- Reason 1: Overwhelming "ease of purchasing"!
As I mentioned earlier, the ETF format has made it much easier for people who were previously interested in Bitcoin but thought, "It seems like it would be difficult to buy..." or "Specialized exchanges are a bit scary..." to start investing. In particular, for traditional investors who regularly invest in stocks, the ease of being able to trade using a familiar securities account seems to be a big attraction. - Reason 2: Great trust in the "Black Rock" brand!
As expected, there seems to be a great sense of security in knowing that it is a product offered by BlackRock, the world's largest asset management company. Many investors think, "If BlackRock is offering it, it must be fine." This is a very important point, especially when considering investing in new fields. - Reason 3: Rising expectations for Bitcoin itself!
The success of IBIT is also being driven by expectations that Bitcoin may increase in value significantly in the future, and the growing number of people around the world who want to add it to their portfolios (the combination of financial products they hold) as a new type of asset. - Reason 4: Strong demand from financial advisors!
A "financial advisor" is an expert who advises individuals on their financial management plans. They have also received many inquiries from customers such as "I want to invest in Bitcoin, but what should I do?" The emergence of reliable ETFs such as IBIT has made it easier for advisors to confidently propose Bitcoin investment to their customers.
A complex combination of these factors has led BlackRock's IBIT to raise capital in record time and be a huge success!
What's next? Bitcoin and our future
The fact that a large financial institution like BlackRock has entered the Bitcoin ETF market in earnest and is experiencing success suggests that Bitcoin may become an even more integral part of our lives and the economy in the future.
Even people who have previously had the impression that Bitcoin is suspicious or something that is hard to understand may gradually have their view changed as a result of the involvement of a trustworthy company like BlackRock.
Perhaps in the future, we may see a time when Bitcoin is discussed as a common investment option, just like stocks and real estate.
Of course, any investment comes with risks. In particular, new assets such as Bitcoin are characterized by large price fluctuations (high price movements). When considering investing, it is most important to gather information carefully and make an investment within your own reasonable limits according to your own circumstances!
John's comment
Well, the time has finally come when a major financial company like BlackRock will begin to fully develop Bitcoin-related financial products. I feel that this could be a major turning point for Bitcoin to evolve from "some enthusiastic fans and people who are knowledgeable about technology" to "a more open investment target that everyone knows." Personally, I'm very excited to see what new innovations and services this movement will create!
This article is based on the following original articles and is summarized from the author's perspective:
Robert Mitchnick Discusses BlackRock's Bitcoin ETF IBIT
Success on Bloomberg