BlackRock Bitcoin ETF Breaks Records, Strengthening Crypto’s Financial Position

BlackRock’s iShares Bitcoin Trust (IBIT) has shattered records in 2024, becoming the fastest-growing exchange-traded fund (ETF) in history. 

BlackRock’s reputation as the world’s largest asset manager, with over $11 trillion under management, has bolstered investor confidence, while the ETF’s explosive growth fueled Bitcoin’s rally, pushing the world’s leading cryptocurrency past the $100,000 mark.

Record Breaking ETF

Launched on January 11, BlackRock’s IBIT surpassed $50 billion in assets under management (AUM) this December. At Bitcoin’s price peak, the fund’s AUM hit a high of $58.57 billion. As of today, IBIT manages $52.15 billion in AUM, according to SoSoValue’s data.

BlackRock’s IBIT ETF surpasses the $50 billion AUM mark in 11 months after its launch. Source: SoSoValue

IBIT remains the market leader, consistently accounting for over 50% of daily trading volume among all US Bitcoin ETFs . Even after a recent record outflow of $188.7 million, the ETF continues to dominate, driving $37.27 billion net inflows into US spot Bitcoin ETFs in 2024.

Top Bitcoin Holder

BlackRock’s massive Bitcoin acquisitions made it a top Bitcoin holder among the US sport Bitcoin ETFs. 

As of the last day of 2024, the US-based Bitcoin ETFs collectively hold more than 1.104 million BTC(or 5% of all existing Bitcoins), surpassing the holdings of Bitcoin’s pseudonymous founder, Satoshi Nakamoto (1.1 million).

BlackRock’s IBIT alone holds 552,554.8 Bitcoins , being the most prominent Bitcoin owner among the rival exchanges traded funds. 

Bitcoin ETFs Outpace Gold

The US ETFs manage over $10 trillion in assets, with spot Bitcoin ETFs now accounting for over $100 billion, or 1% of the entire ETF market.

IBIT’s success has raised speculation it could rival the largest gold ETF as Bitcoin gains traction as “digital gold.” Gold ETFs, first launched in 2004, are now seeing significant outflows as investors shift toward crypto alternatives.

Despite a recent dip in Bitcoin prices, by the end of 2024, BlackRock’s IBIT has solidified its position as a key player in the ETF market, helping establish Bitcoin as a mainstream investment.

On the Flipside

• Despite its market dominance, BlackRock’s IBIT ETF is still vulnerable to sharp Bitcoin price swings, which could impact investor sentiment.

Why This Matters

IBIT’s success underscores Bitcoin’s growing integration into mainstream portfolios, reshaping the ETF landscape and accelerating digital asset adoption by offering institutional investors a familiar entry point into the cryptocurrency market.

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