In summary
- BlackRock’s IBIT surpassed $50 billion in AUM in 228 days, marking an all-time high for ETFs.
- Bitcoin hit $103,000, with spot ETFs being key catalysts for its institutional adoption.
- Analysts highlight new investor demand and regulatory change as drivers of growth.
BlackRock’s iShares Bitcoin Trust (IBIT) has surpassed $50 billion in assets under management, reaching this milestone in just 228 days, more than five times faster than any other ETF in history.
To put it in perspective, the previous record holder, BlackRock’s iShares Core MSCI EAFE ETF (IEFA), took 1,329 days to reach the same threshold, according to Bloomberg senior ETF analyst Eric Balchunas.
IBIT’s rapid growth coincides with a historic year for Bitcoin (BTC). The world’s largest Cryptocurrency surpassed the $100,000 barrier for the first time on Wednesday, closing at $103,000 after rising more than 140% in 2024.
IBIT’s performance signals the growing demand for Bitcoin as an institutional-grade investment and emphasizes the role of spot Bitcoin ETFs in driving its adoption.
Spot Bitcoin ETFs like IBIT have been instrumental in attracting traditional investors to the cryptocurrency market.
Approved by the United States Securities and Exchange Commission (SEC) in January, these funds offer direct exposure to Bitcoin prices without the complexities of custody or trading on cryptocurrency exchanges.
The approval ended years of regulatory resistance and has unleashed billions in inflows from investors who were previously hesitant to enter the space.
As of Wednesday’s market close, BlackRock’s IBIT recorded inflows of $570.7 million, according to data from Farside Investors.
Speaking to Decrypt, Bitfinex analysts noted that new demand from new investors has played a major role in Bitcoin’s record-breaking year.
“BTC’s ability to hit new all-time highs every week, despite profit-taking, is due to new demand entering the market from new investors,” the analysts said. “Any selling has been absorbed and outweighed by strong ETF inflows and subsequent institutional buying.”
Adding momentum to BlackRock’s IBIT performance is the incoming administration of President-elect Donald Trump, whose return to the White House has been accompanied by bold pro-cryptocurrency promises.
Trump has pledged to support the domestic crypto industry, including proposals to create a US Bitcoin reserve and protect US cryptocurrency Mining operations.
With the upcoming departure of anti-crypto SEC Chairman Gary Gensler, and the nomination of Paul Atkins, a former SEC commissioner known for advocating market-friendly policies, analysts expect a shift toward a more collaborative regulatory framework for the market. crypto.
Rather than being viewed as speculative assets, Bitcoin and cryptocurrency-backed ETFs like IBIT are increasingly viewed as tools for diversification and stability, especially as regulatory headwinds are expected to subside.
Edited by Sebastian Sinclair
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