BlackRock’s Bitcoin ETF has hit a major milestone by accumulating $50B in assets.
IBIT surpasses gold ETFs, becoming a leader in institutional crypto adoption.
Vanguard avoids Bitcoin ETFs as BlackRock dominates with record-breaking IBIT.
BlackRock’s iShares Bitcoin Trust (IBIT) has achieved a major milestone in the ETF industry. According to Bloomberg, the fund has accumulated over $50 billion in assets within just 11 months of its 2024 launch. This growth establishes IBIT as the most successful ETF debut in history. It has surpassed traditional investment vehicles that have existed for decades.
The scale of IBIT’s success becomes clear when compared to established ETFs. Its assets now equal the combined holdings of more than 50 European market-focused ETFs, many of which have operated for over 20 years. Bloomberg Intelligence analyst James Seyffart notes that IBIT has become “the fastest ETF to reach most milestones” across all asset classes. It has generated approximately $112 million in annual revenue through its 0.25% expense ratio.
BlackRock’s entry into the crypto space, managing over $11 trillion in assets, brought major institutional credibility to the digital asset market. The path to IBIT’s approval was lengthy and complex, beginning with the Winklevoss twins’ rejected application in 2013 when Bitcoin traded near $100. The breakthrough came after Grayscale Investments’ legal victory against the SEC in 2023, followed by BlackRock’s entry into the market.
IBIT’s dominance among spot Bitcoin ETFs is striking. It reached the $50 billion milestone five times faster than the previous record holder, BlackRock’s own iShares Core MSCI EAFE ETF. The ETF’s success extends beyond asset accumulation. Since its launch, IBIT has experienced only nine days of outflows and consistently accounts for over 50% of daily trading volume among Bitcoin ETFs. Its options trading, introduced on November 19, has become one of the most active among ETF contracts, averaging $1.7 billion in daily notional volume.
This success showcases a growing divide in the investment industry, with BlackRock embracing cryptocurrency while competitors like Vanguard remain on the sidelines, refusing to offer or even facilitate trading in spot Bitcoin ETFs. Looking ahead to 2025, analysts like Nate Geraci of The ETF Store predict IBIT could overtake SPDR Gold Shares as the largest commodity ETF, barring a major Bitcoin price decline.
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