BlackRock’s iShares Bitcoin Trust (IBIT) is rewriting the rulebook for exchange-traded funds (ETFs). Launched in early 2024, IBIT reached a staggering $50 billion in assets under management (AUM) in just 11 months, breaking industry records.
As the fastest-growing ETF in history, it’s a testament to the growing demand for Bitcoin-focused investment products and BlackRock’s unparalleled market influence.
From Zero to $50 Billion in Bitcoin ETF
As Bloomberg reported on December 30, reaching $50 billion in AUM this quickly is nothing short of historic. Bloomberg Intelligence’s James Seyffart called IBIT “the fastest ETF to achieve most milestones across all asset classes.”
To put that into perspective, IBIT has amassed as many assets as more than 50 European ETFs combined, many of which have been around since the early 2000s.
The fund’s financial momentum is aligned with its income potential. With a gross expense ratio of 0.25%, IBIT is projected to generate annual inflows of $112 million.
It also dominates trading activity among Bitcoin ETFs, accounting for more than half of their daily volumes. Since its inception, IBIT has reported outflows on just nine occasions – a rare consistency in an often volatile market.
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It wasn’t an overnight decision for BlackRock to jump into Bitcoin ETFs. Blackrock, the world’s largest asset management firm with $11 trillion under management, didn’t debut until 2024 after years of regulatory struggles.
This was quite a turnaround from the SEC in 2013 when the Winklevoss twins proposed a Bitcoin ETF with Bitcoin still trading at $100.
The change came in 2023 after Grayscale Investment won a court case against the SEC and opened the way for institutional investors, including BlackRock, to launch Bitcoin ETFs.
IBIT’s success underscores a growing divide within the financial world: While BlackRock is working on digital assets, its competitors, such as Vanguard, are not toeing the line, opting not to engage in cryptocurrency products.
Blackrock’s dominance in the ETF ecosystem
IBIT is not just a Bitcoin ETF; it is a market phenomenon. Since the introduction of its options contracts in November 2024, IBIT has averaged $1.7 billion in daily trading volume.
ETF analyst Nate Geraci of The ETF Store suggests that IBIT could soon surpass SPDR Gold Shares (GLD) as the largest commodity ETF, potentially by 2025.
It’s not just a win for Bitcoin, it’s really a shift in the perception investors have about the digital asset. Bitcoin is commonly referred to as “digital money” and has emerged as a real competitor to gold as a safe-haven asset and store of value, as well as an investment instrument.
Moreover, BlackRock’s IBIT has brought about a change that could dictate future trends in this industry. This shows that the adoption rate continues to rise, suggesting that more and more people are now accepting cryptocurrencies like Bitcoin.
For a fund to reach $50 billion in AUM in less than a year is incredible, but it also reflects a broader trend: it means that for any institution it’s not a question of if they will adopt cryptocurrency, but when.
Every day, IBIT is making history and is not just an ETF, but the personification of Bitcoin, which is moving from a unique asset to a core part of investors’ portfolios in the modern world.
BlackRock has not only redefined ETF success, but also cemented its role as a pioneer in the crypto era.
