According to Bloomberg, BlackRock’s iShares Bitcoin Trust (IBIT) has set a new benchmark in the world of exchange-traded funds (ETFs) since its launch in January 2024.
With over $50 billion in assets amassed in just 11 months, IBIT has achieved a feat unparalleled in the industry, outpacing traditional funds that have been operating for decades.
From Skepticism To Success
BlackRock’s foray into the Bitcoin market has been a pivotal moment not only for BTC, but also 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 first time, ushering in a wave of institutional interest and attracting investors who were previously skeptical about the digital asset.
However, the journey to establishing a spot-Bitcoin ETF in the United States has been fraught with challenges. The Winklevoss twins pioneered the effort in 2013, only to face repeated rejections from the US Securities and Exchange Commission (SEC).
Grayscale Investments, on the other hand, spearheaded a legal battle against the SEC, culminating in a crucial victory in 2023 when a federal appeals court overturned the agency’s prior rejection of its ETF application.
As the landscape shifted, BlackRock’s entry, led by CEO Larry Fink—who had once disparaged Bitcoin—signaled a significant change in attitude within traditional finance.
Once the SEC granted approval in January 2024, BlackRock and other firms such as Fidelity and VanEck successfully launched the first 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 more than 50 European-focused ETFs, many of which have been established for over 20 years.
Nate Geraci, president of The ETF Store, aptly described IBIT as “the greatest launch in ETF history.” Bloomberg Intelligence analyst James Seyffart also noted that IBIT is the fastest ETF to reach significant milestones, further solidifying its status as a revolutionary product in 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 next closest fund, which took nearly four years.
As it stands, IBIT has surpassed BlackRock’s gold ETF, the second-largest gold fund globally, despite significant inflows into that fund this year.
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 daily trading volume among Bitcoin ETFs.
IBIT also made history by being the first Bitcoin ETF to offer options, which have quickly become some of the most traded contracts in the ETF market, averaging about $1.7 billion in daily notional volume.
According to research from Asym500, other Bitcoin ETFs have struggled to achieve similar levels of trading activity, highlighting IBIT’s dominance.
At the time of writing, the market’s leading crypto, BTC, is trading at $97,190, recording a gain of nearly 3% in the 24-hour time frame.
Featured image from DALL-E, chart from TradingView.com
