- BlackRock’s Bitcoin ETF is now the fastest-growing fund, surpassing $50 billion in assets under management in 11 months.
- Bitcoin price surpasses $100,000 as BlackRock ETF attracts institutional investors and dominates the market.
BlackRock Inc. iShares Bitcoin Trust (IBIT) has set a new standard in the exchange-traded fund (ETF) industry.
Launched in January 2024, the fund reached $50 billion in assets under management (AUM) in 11 months.
At the same time, this growth made it the fastest-growing ETF of all time, surpassing records across all asset classes, according to Bloomberg.
Blackrock Bitcoin ETF Breaks Records
The iShares Bitcoin Trust has reached milestones at a pace no ETF has matched before.
Todd Sohn, managing director of ETFs and technical strategy at Strategas Securities, noted that IBIT’s asset size is now equivalent to the combined assets under management of more than 50 long-established European ETFs.
Nate Geraci, president of The ETF Store, described IBIT’s launch as “the largest in ETF history.”
Bloomberg Intelligence analyst James Seyffart estimated that with its current assets under management and a 0.25% expense ratio, the fund should generate $112 million in annual revenue for BlackRock.
A boost for BTC
The launch of IBIT also marked a major change for Bitcoin. With the support of BlackRock, Bitcoin (BTC) the price exceeded $100,000 for the first time.
The world’s largest asset manager, overseeing more than $11 trillion, has brought institutional legitimacy to cryptocurrency, attracting both traditional investors and previously cautious individuals.
The path to launching IBIT followed years of regulatory hurdles. Efforts to gain approval for a spot-Bitcoin ETF began as early as 2013, with repeated refusals from the Securities and Exchange Commission (SECOND).
A breakthrough came in 2023 when Grayscale Investments won a Federal Court ruling overturning the SEC’s rejection of its Bitcoin trust conversion application.
Soon after, BlackRock entered the picture, leveraging its regulatory expertise and reputation to secure approval in early 2024.
Dominance in a competitive market
IBIT has become a leader in the crowded sector Bitcoin ETF Marketwhich now holds $107 billion in assets across 12 funds. BlackRock’s offering accounts for more than half of the daily trading volume between these funds.
Since its launch, IBIT has seen capital outflows on just nine days, reflecting continued investor interest.
The introduction of options trading by the fund on November 19 strengthened its attractiveness.
Research firm Asym500 reported that IBIT options have become among the most traded ETFs, with an average daily volume of $1.7 billion.
Competing products, including those from Fidelity and Grayscale, lag far behind, averaging just 1% of IBIT volume.
Vanguard’s approach
While BlackRock has embraced Bitcoin ETFs, its competitor Vanguard has stayed out of the space. Vanguard also restricted negotiation of Bitcoin ETFs on its brokerage platform.
Analysts suggest this could alienate younger investors who view cryptocurrency as a core asset class.
Nate Geraci noted that the move could give BlackRock a strategic advantage,
“Young investors are increasingly including crypto in their portfolios, and BlackRock’s move positions it as a forward-thinking leader,” he said.
As IBIT continues to grow, it has established itself as a key player in the continued expansion of Bitcoin into traditional financial markets.
