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- The BlackRock Bitcoin ETF (IBIT) has surged to the top three global ETFs with $1.14 trillion in inflows in 2024, highlighting increased institutional interest in cryptocurrency following the approval of Bitcoin ETFs in January.
- In 2024, Bitcoin emerged as the frontrunner among 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 how investors engage with digital assets. Among these, the BlackRock Bitcoin ETF has smushed industry records, surprising many by breaking into the top three global ETFs, thanks to a staggering $1.14 trillion in inflows in a single year.
Eric Balchunas, a senior ETF analyst at Bloomberg, highlighted the impressive performance of the BlackRock Bitcoin ETFs (IBIT), noting that the ETF secured a remarkable $37.25 billion in assets during its debut year of trading. This achievement positioned it firmly in third place on the final Top 20 ETF Leaderboard for 2024, underscoring the growing investor confidence in Bitcoin as a legitimate asset class.
The journey to a spot Bitcoin ETF in the U.S. began with the Winklevoss twins’ application in 2013, when Bitcoin was nearly $100. After receiving the green light in January 2024, BlackRock, along with GrayScale, Fidelity, and VanEck, launched the first U.S. ETFs that invest directly in Bitcoin (BTC).
The allure of the BlackRock Bitcoin ETF is further bolstered by the cryptocurrency’s performance in the market. According to data collected by independent wealth management firm Creative Planning, Bitcoin recorded an exceptional total return of 121% in 2024. This outstanding growth outpaced 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 the dominant force in the cryptocurrency investment market, securing over $37 billion in inflows far surpassing its nearest competitor, the Fidelity Wise Origin Bitcoin Fund (FBTC), which garnered $11.84 billion and ranked 14th. This inflow for IBIT was more than three times that of Fidelity’s.
Other competitors trailed significantly, with the Bitwise Bitcoin ETF (BITB) attracting only $2.17 billion. Grayscale faced a challenging year with a net outflow of $21.296 billion, even as the overall U.S. The Bitcoin spot ETF market saw a positive net inflow of $35.24 billion.
As Bitcoin continued to gain traction, it outperformed traditional asset classes significantly. In 2024, various investment assets had notable returns, with Gold up 26.7%, NASDAQ 100 gaining 25.6%, U.S. Large Caps growing 24.9%, and Mid Caps rising 13.6%. In comparison, Bitcoin gained 156% in 2023, while gold gained 12.7%.
Managing over $11 trillion in assets, BlackRock significantly influenced Bitcoin’s price, pushing it past $100,000 for the first time. Bitcoin started the year at about $42,280 and closed at $93,429, marking an annual growth of 120.97%. After peaking at $108,000, Bitcoin has since dropped but is currently trading at $96,247, with slight increases of 0.63% over the past 24 hours and 1.03% over the past week.
