Key Notes
- BlackRock’s IBIT has amassed more than $50 billion in AuM.
- The Bitcoin ETF is now the most successful of all global ETF products launched in history.
- The product even outshined gold, regarded as the biggest ETF in the market.
In 2024, the BlackRoc iShares Bitcoin Trust (IBIT) product shattered records and redefined expectations for exchange-traded funds (ETFs). Within 11 months, this fund surpassed $50 billion in Assets Under Management (AuM).
Its meteoric rise makes it the most successful ETF debut to date. This is a feat that no other fund has come close to achieving in such a short period.
BlackRock Bitcoin ETF: A Game-Changer for Bitcoin and Traditional Finance
BlackRock’s success with IBIT is more than just about impressive growth. It marks a major change in how investors view Bitcoin. When BlackRock entered the Bitcoin ETF space, it gave the coin a new level of trust from institutional investors who once saw it as too risky.
This move followed years of rejection from the U.S. Securities and Exchange Commission (SEC). The regulatory agency turned down Bitcoin ETF applications from other companies, including the Winklevoss twins.
But after Grayscale Investments won a legal battle and BlackRock made its move, Bitcoin ETFs finally secured approval. The SEC approval showed that digital assets were starting to be accepted in traditional investment portfolios.
As Bitcoin’s price passed $100,000 for the first time, BlackRock’s approval made Bitcoin more credible in the eyes of investors. With BlackRock leading the way, other big firms also started offering Bitcoin ETFs.
These funds have collectively amassed over $107 billion in assets, with IBIT leading the pack at more than $50 billion after just 11 months, outpacing the growth trajectories of many long-established ETFs.
To put it into perspective, IBIT now has more assets than over 50 European ETFs, some of which have been around for decades. As Todd Sohn from Strategas Securities pointed out, this rapid growth shows the strong momentum behind IBIT and Bitcoin’s wider appeal.
BlackRock’s Strategic Edge: Innovation and Market Liquidity
Despite Vanguard’s cautious stance, BlackRock’s approach to digital assets remains bold. This move has pushed other firms to create their own Bitcoin ETFs, though none have matched IBIT’s success.
One key factor behind IBIT’s rapid growth is its innovative features. It was the first Bitcoin ETF to offer options tied to the fund. Since its launch in November, those options now rank among the most actively traded ETFs in the market. It has raked in an average of $1.7 billion in daily volume.
The robust liquidity demonstrates significant institutional appetite for IBIT, which now commands over half of the daily trading volume in the spot Bitcoin ETF market. This dominant market position reflects the fund’s impressive growth trajectory, mirroring Bitcoin’s 118% rally throughout 2024.
IBIT’s performance shows a clear connection between Bitcoin ETFs and Bitcoin’s market success. Even with only nine days of outflows since its launch, IBIT has proven stable and reliable. It has strengthened its position as a dominant force in the ETF market.
There is speculation that 2025 IBIT could surpass SPDR Gold Shares, the largest gold ETF if Bitcoin’s price stays strong. This would be a major milestone, as gold has long been considered the safest investment.
IBIT’s success shows that Bitcoin is viewed less as a risky asset and more as a new form of “digital gold.” As more institutional investors get involved, Bitcoin ETFs like IBIT will likely launch. This would make Bitcoin a key part of diversified investment portfolios.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
