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BlackRock Brings Bitcoin ETFs to Bloomberg: A Mainstream Push to Boost $15B in Inflows

Last Updated April 12, 2024 12:22 PM
Shraddha Sharma
Last Updated April 12, 2024 12:22 PM

Key Takeaways

  • BlackRock Bitcoin ETF IBIT is featuring a massive advertisement on Bloomberg.
  • IBIT saw net inflows totaling $15B since the January debut.
  • BlackRock fund manager reported an 11% increase in YoY revenue.

In another attempt to mainstream its Bitcoin ETF, BlackRock has launched a large-scale advertising campaign for IBIT on Bloomberg’s homepage.

The development comes as BlackRock inches closer to overtaking Grayscale as the largest Bitcoin ETF. IBIT surpassed $15b in total net inflows according to Farside data.  

BlackRock Moves Revenue to Marketing

BlackRock has placed a major advertisement for its Bitcoin ETFs on the Bloomberg homepage, channeling its revenue to marketing. As IBIT remains the best Bitcoin ETF performer, the ad serves to attract investors and legitimize the product.

To understand how much the ad costs, we looked at the Bloomberg Businessweek advertising rate for 2023.

The paper’s advertising rates vary significantly across its global and regional editions. For the Global edition, the rates are set with a circulation base of 200,000, with charges ranging from $73,100 for a single page to $182,750 for a 2nd cover spread.

In North America, where the rate base is 154,000, the costs are slightly lower but still substantial, with a single page costing $67,000 and the 2nd cover spread reaching $167,700.

Bloomberg's Advertising Rates
Bloomberg’s Advertising Rates for 2023

BlackRock Inflows Surpass $15B

The advertising cost seems to be insignificant for the fund manager’s revenue stream. BlackRock’s Bitcoin ETF IBIT has surpassed $15b in total inflows as per Farside data . Despite a general outflow of around $125m from the Grayscale Bitcoin Trust (GBTC) on April 11, IBIT brought in $192m.

The total inflows for the day exceeded $91m. The total purchase of Bitcoin came to around 1,300 BTC  by all ETFs in a single day.

Meanwhile, BlackRock reported  first-quarter 2024 financials with an 11% increase in year-on-year revenue. The company’s assets under management (AUM) have seen an increase, now totaling a record $10.5t, marking a $1.4t increase year-over-year. The Q1 net inflows came to $52b for the fund.

Laurence D. Fink, Chairman and CEO of BlackRock, highlighted the company’s ongoing momentum and the acceleration in client activity. He pointed out that BlackRock continues to innovate and invest in its platform, anticipating evolving client needs.

He noted, “Organic asset and base fee growth accelerated into the end of the quarter, and first quarter long-term net inflows of $76 billion already represent nearly 40% of the full year 2023 levels.”

BlackRock’s Aggressive Bitcoin Foray

BlackRock’s IBIT remains a strong ETF player, inching towards the top spot in Bitcoin holdings. IBIT’s strategic advertising on Bloomberg on the back of the fund manager’s growing revenue and inflows points to an attempt to build legitimacy and a strong investor base.

 

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