- The BlackRock Bitcoin ETF (IBIT) jumped into the top three global ETFs with $1.14 trillion in 2024 inflows, highlighting increased institutional interest in cryptocurrencies following the approval of Bitcoin ETFs in January.
- In 2024, Bitcoin emerged as the front-runner among the major asset classes, boasting an impressive annual growth rate of 121%, eclipsing gold, which recorded a return of 26.7%.
The rise of exchange-traded funds (ETFs) in 2024 marked a significant development in the way investors deal with digital assets. Among them, the BlackRock Bitcoin ETF broke industry records, surprising many by breaking into the top three global ETFs, thanks to inflows of a staggering $1.14 trillion in one year.
Eric Balchunas, senior ETF analyst at Bloomberg, highlighted the impressive performance of BlackRock Bitcoin ETFs (IBIT), noting that the ETF secured a remarkable $37.25 billion in assets during its first year of trading. This achievement firmly placed it in third place in the final ranking of the top 20 ETFs for 2024, highlighting the growing confidence of investors in Bitcoin as a legitimate asset class.
The journey to a spot Bitcoin ETF in the US began with the Winklevoss twins’ filing in 2013, when Bitcoin was nearly $100. After getting the green light in January 2024, BlackRock, along with GrayScale, Fidelity and VanEck, launched the first US ETFs that invest directly in Bitcoin (BTC).
The appeal of the BlackRock Bitcoin ETF is further enhanced by the performance of the cryptocurrency in the market. According to the collected data by independent asset management firm Creative Planning, Bitcoin posted an extraordinary total return of 121% in 2024. This extraordinary growth outperformed every other major asset class, including gold and the S&P 500, among other financial instruments.
Bitcoin Performance Analysis in 2024
In 2024, BlackRock’s Bitcoin ETF, IBIT, emerged as a dominant force in the cryptocurrency investment market, securing over $37 billion in inflows far outstripping its closest competitor, the Fidelity Wise Origin Bitcoin Fund (FBTC), which raised $11.84 billion and took 14th place. This inflow for IBIT was more than three times that of Fidelity.
Other competitors lagged significantly behind, with the Bitwise Bitcoin ETF (BITB) attracting just $2.17 billion. Grayscale faced a challenging year with net outflows of $21.296 billion, although the overall US The Bitcoin spot ETF market saw a positive net inflow of $35.24 billion.
As Bitcoin continued gain tractionit significantly outperformed traditional asset classes. In 2024, various investment assets saw significant returns, with gold up 26.7%, NASDAQ 100 up 25.6%, US Large Caps up 24.9%, and Mid Caps up 13, 6%. In comparison, Bitcoin gained 156% in 2023, while gold gained 12.7%.
With over $11 trillion in assets under management, BlackRock significantly impacted the price of Bitcoin, pushing it above $100,000 for the first time. Bitcoin started the year at around $42,280 and closed at $93,429, recording an annual growth of 120.97%. After reaching a peak of $108,000, Bitcoin has since fallen but is currently trading at $96,247with a slight increase of 0.63% over the last 24 hours and 1.03% over the past week.
