According to Bloomberg, BlackRock’s iShares Bitcoin Trust (IBIT) has set a recent benchmark on the earth of exchange-traded funds (ETFs) since its launch in January 2024.
With over $50 billion in assets amassed in only 11 months, IBIT has achieved a feat unparalleled within the industry, outpacing traditional funds which were operating for a long time.
From Skepticism To Success
BlackRock’s foray into the Bitcoin market has been a pivotal moment not just for BTC, but in addition for the broader cryptocurrency market.
With over $11 trillion in assets under management, the firm’s endorsement has contributed to Bitcoin’s move beyond the $100,000 mark for the primary time, ushering in a wave of institutional interest and attracting investors who were previously skeptical concerning the digital asset.
Nevertheless, the journey to establishing a spot-Bitcoin ETF in america has been fraught with challenges. The Winklevoss twins pioneered the hassle in 2013, only to face repeated rejections from the US Securities and Exchange Commission (SEC).
Grayscale Investments, then again, spearheaded a legal battle against the SEC, culminating in an important victory in 2023 when a federal appeals court overturned the agency’s prior rejection of its ETF application.
Because the landscape shifted, BlackRock’s entry, led by CEO Larry Fink—who had once disparaged Bitcoin—signaled a major change in attitude inside traditional finance.
Once the SEC granted approval in January 2024, BlackRock and other firms comparable to Fidelity and VanEck successfully launched the primary cohort of US ETFs investing directly in Bitcoin, collectively amassing around $107 billion in assets.
Todd Sohn, managing director of ETF and technical strategy at Strategas Securities, highlighted that IBIT’s rapid growth eclipses the combined assets of greater than 50 European-focused ETFs, a lot of which have been established for over 20 years.
Nate Geraci, president of The ETF Store, aptly described IBIT as “the best launch in ETF history.” Bloomberg Intelligence analyst James Seyffart also noted that IBIT is the fastest ETF to succeed in significant milestones, further solidifying its status as a revolutionary product within the financial landscape.
BlackRock’s Bitcoin ETF Surpasses $50 Billion In Assets
Amidst a growing spot Bitcoin ETF market, IBIT has distinguished itself with its rapid asset growth, reaching over $50 billion five times faster than the subsequent closest fund, which took nearly 4 years.
Because it stands, IBIT has surpassed BlackRock’s gold ETF, the second-largest gold fund globally, despite significant inflows into that fund this yr.
The impact of IBIT on Bitcoin’s market dynamics is profound. The ETF has been instrumental in Bitcoin’s 118% price rally year-to-date, with IBIT accounting for over 50% of each day trading volume amongst Bitcoin ETFs.
IBIT also made history by being the primary Bitcoin ETF to supply options, which have quickly develop into a few of the most traded contracts within the ETF market, averaging about $1.7 billion in each day notional volume.
In keeping with research from Asym500, other Bitcoin ETFs have struggled to realize similar levels of trading activity, highlighting IBIT’s dominance.
On the time of writing, the market’s leading crypto, BTC, is trading at $97,190, recording a gain of nearly 3% within the 24-hour timeframe.
Featured image from DALL-E, chart from TradingView.com