Emily Walker
As reported by Bloomberg, BlackRock’s iShares Bitcoin Trust (IBIT) has made a remarkable impact in the exchange-traded funds (ETFs) sector since its inception in January 2024.
In just 11 months of operations, IBIT has surged to over $50 billion in assets, outstripping established funds that have been around for many years.
Transforming Perspectives Towards Bitcoin
BlackRock’s entry into the Bitcoin sector has been transformative for both Bitcoin and the broader cryptocurrency market.
Backed by over $11 trillion in assets, BlackRock’s support has driven Bitcoin past the $100,000 threshold for the first time, attracting institutional investors who had been previously doubtful about cryptocurrency.
However, the path to securing a spot-Bitcoin ETF in the US has had its hurdles. The Winklevoss twins initiated the movement in 2013 but faced continuous denials from the US Securities and Exchange Commission (SEC).
Grayscale Investments also took a stand, fighting a legal battle against the SEC, which culminated in a significant 2023 court ruling that favored its ETF application previously denied by the agency.
As the market evolved, BlackRock’s entry, helmed by CEO Larry Fink—who had once criticized Bitcoin—marked a significant shift in the traditional finance sector’s viewpoint.
Once approved by the SEC in January 2024, BlackRock, alongside other firms like Fidelity and VanEck, successfully rolled out the initial series of US ETFs that invest directly in Bitcoin, accumulating approximately $107 billion in assets.
Todd Sohn, managing director of ETF and technical strategy at Strategas Securities, pointed out that the swift growth of IBIT exceeds the total assets of over 50 European-focused ETFs that have been established for more than two decades.
Nate Geraci, president of The ETF Store, remarked that IBIT represents “the greatest launch in ETF history.” Additionally, Bloomberg Intelligence analyst James Seyffart highlighted that IBIT has become the fastest ETF to reach significant achievements, reinforcing its revolutionary role in finance.
IBIT Exceeds $50 Billion In Assets
In a rapidly growing spot Bitcoin ETF market, IBIT has set itself apart with a quick rise to over $50 billion in assets, achieving this milestone five times faster than the next closest fund, which took almost four years to reach similar levels.
Currently, IBIT has outperformed BlackRock’s gold ETF, the second-largest gold fund in the world, despite strong inflows into that fund this year.
The influence of IBIT on Bitcoin’s market dynamics has been significant. The ETF has played a vital role in a 118% rally for Bitcoin’s price so far this year, with IBIT accounting for over half of the daily trading volume among Bitcoin ETFs.
Additionally, IBIT broke new ground by being the first Bitcoin ETF to introduce options, which have quickly become some of the most actively traded contracts in the ETF arena, with an average daily trading volume of about $1.7 billion.
Research from Asym500 indicates that other Bitcoin ETFs have had a tough time matching IBIT’s level of trading activity, underscoring IBIT’s superiority in this market.
As of this writing, Bitcoin (BTC) is valued at $97,190, showing a near 3% increase within the last 24 hours.
Image featured from DALL-E, with a chart sourced from TradingView.com.