BlackRock's Bitcoin spot ETF—iShares Bitcoin Trust (IBIT)—attracted over $50 billion in funds in 2024, setting the record for 'the most successful issuance in ETF history.'
In the global asset management industry, BlackRock is renowned for its leading position and innovative spirit. However, its Bitcoin spot ETF—iShares Bitcoin Trust (IBIT)—is undoubtedly the most eye-catching product of 2024. Since its launch, this ETF has quickly attracted over $50 billion in funds at an astonishing speed, being hailed as 'the most successful issuance in ETF history,' not only changing the landscape of the ETF market but also redefining Bitcoin's role in the global financial system.
Since being approved for listing in January 2024, IBIT has attracted $50 billion in funds in less than a year, quickly surpassing the asset management scale of several long-established ETFs in Europe.
This growth rate is unprecedented, and it is also unique among all asset class ETF launches. Bloomberg ETF analyst James Seyffart points out that with a management fee of 0.25%, IBIT can generate over $112 million in revenue for BlackRock each year. This financial performance further solidifies its leading position in the ETF market.
Behind IBIT's success lies not only the market's high trust in Bitcoin but also the strong demand from investors for emerging assets. Globally, investors are viewing Bitcoin as a value storage tool comparable to gold, and the launch of IBIT provides a more convenient and transparent investment channel for this trend.
Bitcoin moving towards mainstream investment portfolios
The success of IBIT not only creates a new benchmark for the ETF market but also serves as an important driver for the surge in Bitcoin prices. In 2024, Bitcoin first broke the $100,000 barrier, closely related to the market impact of IBIT. As one of the largest asset management companies in the world, BlackRock extends its financial influence into the cryptocurrency market with over $11 trillion in assets under management, promoting Bitcoin as part of mainstream investment portfolios.
At present, there are 12 Bitcoin spot ETFs in the United States, with a total asset scale of $107 billion. IBIT leads among them with an overwhelming advantage, becoming the preferred tool for investors entering the Bitcoin market. This not only enhances Bitcoin's recognition but also provides a successful example for the launch of other cryptocurrency ETFs.
Challenging the dominance of gold ETFs
The rapid rise of IBIT has prompted the investment community to discuss whether it can challenge the dominance of gold ETFs. Currently, IBIT has become the world's largest Bitcoin spot ETF, reaching a scale of $50 billion in just 11 months, with a growth rate five times that of BlackRock's second-ranked ETF, 'iShares Core MSCI EAFE ETF.'
Furthermore, since the options trading began in November 2024, IBIT's average daily trading volume has reached $1.7 billion, a figure far exceeding other similar products, demonstrating its strong competitiveness in the market. The ETF Store President Nate Geraci believes that if Bitcoin prices continue to rise, IBIT is likely to surpass the current largest gold ETF in the world—'SPDR Gold Shares'—in 2025, becoming the absolute leader in the global investment product market.