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- BlackRock’s Ishares Bitcoin Trust (IBIT) holds $52.4 billion in Bitcoin, marking explosive growth since its early 2024 launch.
- IBIT surpassed the $50 billion milestone five times faster than any other ETF, with $35.24 billion in net inflows.
BlackRock, the asset management giant, has gained significant attention with its Ishares Bitcoin Trust (IBIT), which now holds an eye-popping $52.4 billion in Bitcoin. That equates to 557405.05 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 fund (ETF) history, according to Bloomberg.
Market experts are buzzing about IBIT’s trajectory. Nate Geraci, president of The ETF Store, called it the “greatest launch in ETF history.” His sentiment echoes widespread acclaim, as IBIT surpassed the $50 billion milestone 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 Outshines Other Bitcoin Funds
The momentum behind IBIT has also highlighted a stark contrast with other Bitcoin-linked investment vehicles. For instance, Grayscale’s Bitcoin Trust (GBTC) experienced outflows of $21.35 billion this year after transitioning to a public ETF. Despite its struggles, GBTC still contributes to the larger conversation about Bitcoin ETFs becoming central to mainstream finance.
BlackRock dominates the broader ETF sector. Its influence is unmatched, from equity-focused products like iShares Core S&P 500 ETF to niche offerings such as iShares Semiconductor ETF. Yet, IBIT’s explosive growth is a standout even within the firm’s impressive portfolio. Analyst James Seyffart noted:
It’s the fastest ETF to reach most milestones, faster than any other ETF in any asset class.
The 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 rally, including growing institutional interest and inflows from Bitcoin ETFs like IBIT. BlackRock itself has become one of the largest Bitcoin holders globally, further driving demand.
IBIT Tops Spot Market, Options Soar
Additionally, IBIT’s dominance extends beyond the spot market. In November, options trading for the Bitcoin ETF launched on Nasdaq, quickly becoming one of the most traded contracts. With a 20-day average daily volume of $1.7 billion, IBIT options rank seventh among ETF options globally.
As BlackRock celebrates its $11.5 trillion in assets under management by the end of Q3 2024, its foray into Bitcoin is rewriting the narrative for traditional finance. The rise of IBIT signals a shift in investor sentiment, bringing cryptocurrency into the fold of diversified investment strategies.
Observers are now keen to see how BlackRock and other institutional players navigate the evolving market. With IBIT earning about $112 million annually at its current asset level and expense ratio, it is not just a milestone for ETFs but a broader indicator of Bitcoin’s increasing legitimacy in global finance.
