On Monday, Bloomberg highlighted BlackRock’s Ishares Bitcoin Trust (IBIT), calling it the “greatest launch” in exchange-traded fund (ETF) history.
BlackRock IBIT hits record, Bitcoin in focus
Blackrock, the world’s largest asset manager, saw its assets under management hit an all-time high of $11.5 trillion at the end of the third quarter of 2024, thanks to large net inflows and favorable market conditions.
At the end of the year, Bloomberg quoted ETF Store President Nate Geraci as saying that the Ishares Bitcoin Trust (IBIT) was the "greatest launch in ETF history."
According to Bloomberg, the IBIT fund currently holds over $50 billion in Bitcoin, with its holdings valued at approximately $52.4 billion as of December 30, amounting to an impressive 552,554.76 BTC. Shukla summarized in the report: "In short, no ETF debut has been better than this one." Since January 11, 2024, BlackRock's IBIT has attracted $37.31 billion in positive net inflows.
A total of 12 funds have accumulated net inflows of $35.66 billion, with Grayscale's Bitcoin Trust (GBTC) playing a balancing role. Although IBIT and 10 other ETFs have attracted positive net inflows since their launch, GBTC has lost $21.35 billion during the transition from over-the-counter (OTC) products to public ETFs. It could be argued that the outflows from GBTC this year have reached a historic high, a trend worth noting.
BlackRock's exchange-traded products (ETPs) are among the world's leading ETFs, including Ishares Core S&P 500 ETF (IVV), Ishares Core MSCI Total International Stock ETF (IXUS), Ishares Core US Aggregate Bond ETF (AGG), and Ishares Semiconductor ETF (SOXX). "The growth of IBIT is unprecedented," Bloomberg Intelligence analyst James Seyffart detailed in a report on Monday.
Seyffart added:
Looking to the future, market observers are eager to see how savvy investors incorporate Bitcoin into their diversified investment baskets. This whirlwind of activity highlights a shift in perceptions of the formerly niche over-the-counter market, which only featured GBTC and European ETPs, raising curiosity about whether other financial giants will continue to drive this massive demand. These developments add new twists to this increasingly powerful asset class, aiming for broader recognition in the international financial arena. This is a sign of the soaring interest in Bitcoin.
