BlackRock’s Bitcoin ETF Shatters Records with $50B in Assets

BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has reached an impressive milestone, surpassing $50 billion in assets in just 228 days. This is more than five times faster than any ETF before it. For comparison, BlackRock’s iShares Core MSCI EAFE ETF took over 1,300 days to reach the same amount.

What’s Driving Bitcoin’s Surge?

Bitcoin has soared by more than 140% this year, with big institutional investors leading the charge. The launch of IBIT has made it easier for these investors to access Bitcoin’s potential without the hassle of buying, holding, or trading the cryptocurrency directly.

As a result, IBIT has quickly become a top choice for large-scale investors looking to benefit from Bitcoin’s growth.

Ki Young Ju, Founder of CryptoQuant, points out that fresh capital is driving both Bitcoin’s price increase and the growing interest in Bitcoin ETFs. As Bitcoin’s realized cap increases, its ceiling price has risen from $129K to $146K in just 30 days.

Even at $102K, Bitcoin is still far from being considered a bubble, needing a 43% surge to reach levels that are usually seen as overvalued.

Simple Investment Access

Spot Bitcoin ETFs, like BlackRock’s IBIT, offer a simple way for investors to gain exposure to Bitcoin’s price movements. These ETFs were approved by the U.S. SEC earlier this year, after years of regulatory pushback. Now, instead of worrying about how to store or secure Bitcoin, investors can buy shares of an ETF that tracks Bitcoin’s value. This has opened the door for billions of dollars to flow into Bitcoin from traditional finance.

Nate Geraci, President of the ETF Store, recently highlighted the impressive growth of BlackRock’s IBIT. He noted that it has already surpassed the iShares Gold ETF (IAU), which launched in 2005. If IBIT were BlackRock’s only ETF, it would already be among the top 15 ETF issuers in the world.

Despite initial doubts about demand for a Bitcoin ETF, IBIT’s rapid growth has exceeded all expectations.

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In a major shift, Bitcoin, which has been around for just over a decade, is now more popular in BlackRock’s investment portfolio than gold, a traditional store of value.

Bitcoin ETFs See Explosive Growth

The Bitcoin ETF market is growing at an incredible rate. Just this week, Bitcoin ETFs saw $676 million in inflows in a single day. This has pushed the total assets in U.S. Bitcoin ETFs to more than $104 billion, nearly matching the amount of Bitcoin held by its mysterious creator, Satoshi Nakamoto.

The political climate is also shifting in Bitcoin’s favor, with President-elect Donald Trump promising pro-crypto policies, such as a U.S. Bitcoin reserve, and the appointment of SEC Chair Paul Atkins. Analysts expect the regulatory landscape to become even more favorable for Bitcoin and ETFs like IBIT.