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- BlackRock’s Ishares Bitcoin Trust (IBIT) holds $52.4 billion in Bitcoins, seeing explosive growth since its launch in early 2024.
- IBIT crossed the $50 billion mark five times faster than any other ETF, with $35.24 billion in net inflows.
BlackRock, the asset management giant, has attracted significant attention with its Ishares Bitcoin Trust (IBIT), which now holds a whopping $52.4 billion in Bitcoins. That equates to 557,405.05 BTC as of December 31, 2024. The fund, launched in early 2024, has attracted $35.24 billion in net inflows, marking the fastest rise to prominence in exchange-traded funds (ETF) history, according to Bloomberg.
Market experts are buzzing about IBIT’s trajectory. Nate Geraci, president of The ETF Store, called it “the largest launch in ETF history.” His sentiment reflects widespread recognition that IBIT has surpassed the $50 billion mark five times faster than BlackRock’s own iShares Core MSCI EAFE ETF, which took nearly four years to reach a similar figure.
BlackRock IBIT’s momentum beats other Bitcoin funds
The momentum behind IBIT also highlighted a stark contrast to other Bitcoin-related investment vehicles. For example, Grayscale’s Bitcoin Trust (GBTC) saw $21.35 billion in outflows this year after switching to a public ETF. Despite its difficulties, GBTC is still contributing to the larger conversation about Bitcoin ETFs becoming central to mainstream finance.
BlackRock dominates the broader ETF sector. Its impact is unmatched, from equity-focused products like the iShares Core S&P 500 ETF to niche offerings like the iShares Semiconductor ETF. Still, IBIT’s explosive growth stands out even within the company’s impressive portfolio. Analyst James Seyffart noted:
It is the fastest ETF to achieve most milestones, faster than any other ETF in any asset class.
IBIT’s debut also coincides with bitcoin’s stellar year. The cryptocurrency surged past $108,000 in early December, more than doubling its price in 2024. Several factors contributed to this surge, including growing institutional interest and inflows from Bitcoin ETFs like IBIT. BlackRock itself has become one of the largest holders of Bitcoin globally, further increasing demand.
IBIT tops spot market, options rise
Additionally, IBIT’s dominance extends beyond the spot market. In November, Bitcoin ETF options began trading on the Nasdaq, quickly becoming one of the most traded contracts. With a 20-day average daily volume of $1.7 billion, IBIT options are ranked seventh among ETF options globally.
As BlackRock celebrates its $11.5 trillion in assets under management by the end of the third quarter of 2024, its foray into Bitcoin is rewriting the narrative of traditional finance. The rise of IBIT signals a change in investor sentiment, bringing the cryptocurrency into the fold of diverse investment strategies.
Observers now want to see how BlackRock and other institutional players manage the emerging market. With IBIT earning about $112 million a year at its current asset-to-expense ratio, this is not only a milestone for ETFs, but a broader indicator of Bitcoin’s growing legitimacy in global finance.
