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BlackRock Bitcoin ETF Achieves Remarkable Growth, Reaching $50 Billion in Assets Under Management in 11 Months
BlackRock’s iShares Bitcoin Belief (IBIT) has surpassed the performance of the asset manager’s other 1,400 exchange-traded funds (ETFs) this year. Nate Geraci, president of The ETF Retailer, describes it as “the best launch in ETF history.”
According to a recent Bloomberg report, the Bitcoin ETF, which debuted on January 11, 2024, is the most successful ETF to date.
BlackRock’s IBIT has accumulated over $50 billion in assets under management (AuM) within the past 11 months, as noted in the report. This marks the first instance of an ETF making such a significant entrance.
As stated by Todd Sohn, managing director of ETF at Strategas Securities, IBIT’s AuM is equivalent to more than 50 European market-focused ETFs combined. Some of these European ETFs have been in existence for over 20 years.
“IBIT’s growth is unprecedented,” remarked Bloomberg Intelligence analyst James Seyffart. “It is the fastest ETF to reach numerous milestones, quicker than any other ETF across all asset classes.”
Seyffart projected that IBIT could generate approximately $112 million annually, based on an expense ratio of 0.25% and the current asset level.
This development follows a day after US Spot Bitcoin ETFs recorded impressive net inflows of $35.66 billion in 2024, with BlackRock’s IBIT leading the market at $37.31 billion in inflows.
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Additionally, BlackRock’s $11 trillion in assets under management has contributed to Bitcoin’s price exceeding $100,000 for the first time.
BlackRock’s IBIT May Surpass Gold ETFs
As BlackRock’s IBIT takes the lead, Gold ETFs, which currently have a market size of $274 billion, are experiencing significant outflows for the first time in six months.
Furthermore, there is speculation that IBIT could outperform the largest gold ETF – SPDR Gold Shares, provided Bitcoin prices remain strong.
Nate Geraci recently presented a chart that draws a striking comparison between spot gold ETFs and Bitcoin ETFs in the US. For context, Gold ETFs were introduced in 2004, while Bitcoin ETFs were launched in 2024.
One of the more ridiculous charts you’ll ever see…
Assets in spot gold ETFs vs Bitcoin ETFs.
Gold ETFs launched in 2004.
Bitcoin ETFs in 2024.
through @glxyresearch pic.twitter.com/eJo7Db9kb3— Nate Geraci (@NateGeraci) December 28, 2024
This indicates that Bitcoin is perceived as less risky and more akin to a form of “digital gold.”
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