BlackRock’s iShares Bitcoin Belief (IBIT) has reached a brand new excessive, changing into the most important spot bitcoin exchange-traded fund (ETF) within the U.S.
In simply 18 months since its launch in January 2024, IBIT has accumulated over 700,000 BTC, now value over $80 billion, and accounts for greater than 55% of all bitcoin held by U.S. spot ETFs.
The numbers are mind-boggling. On July 3, IBIT held 698,919 BTC. Simply days later, a internet influx of over 1,500 BTC took it previous 700,000. By July 10, it was 706,000 BTC in response to BlackRock’s web site.
Nate Geraci, president of NovaDius Wealth Administration, stated on X that it’s “ridiculous” that the fund attracted this a lot in such a short while.
IBIT’s progress has not solely made it the most important bitcoin ETF by AUM, but in addition considered one of BlackRock’s top-performing funds.
In keeping with Bloomberg ETF analyst Eric Balchunas, it’s now the third highest revenue-generating ETF in BlackRock’s 1,197 fund lineup, and simply $9 billion away from being #1.
As of early July, U.S. spot bitcoin ETFs maintain round 1.25 million BTC, about 6% of the entire 21 million provide.
IBIT’s share of 56% is greater than double its closest rivals. Constancy’s FBTC has over 200,000 BTC and Grayscale’s GBTC has declined to round 184,000 BTC after beforehand holding over 600,000.
BlackRock’s dominance isn’t restricted to measurement. It additionally leads in buying and selling quantity. IBIT often accounts for round 80% of each day quantity amongst bitcoin ETFs. On July 10, its buying and selling quantity stood at $5 billion, double its common quantity.
IBIT’s success exhibits how enticing bitcoin has turn out to be amongst institutional traders. Asset managers, companies and excessive internet value people have been steadily stepping into bitcoin because the asset beneficial properties legitimacy by means of ETFs.
Balchunas calls the quantity spikes “massive boy flows,” that means massive institutional cash is at play right here. These flows are taking place because the broader digital asset market is rallying, with bitcoin skyrocketing previous $118,000 and simply shy of the $120,000 goal.
Inflows into U.S. spot bitcoin ETFs have reached over $75 billion since 2024 (excluding GBTC outflows), and BlackRock’s IBIT accounts for over $53.4 billion of that. On July 10, internet inflows into spot ETFs have been $1.175 billion and BlackRock was on the high once more.
BlackRock’s bitcoin fund isn’t simply rising quick—it’s extra worthwhile than a few of BlackRock’s greatest conventional funds. Whereas BlackRock’s S&P 500 ETF (IVV) has $624 billion in AUM, IBIT has now generated $187.2 million in annual fees, beating IVV’s $187.1 million.
Bitcoin can also be beginning to rival gold as a safe-haven asset. Whereas the SPDR Gold Shares ETF (GLD) is the most important gold ETF with over $100 billion in AUM, it took GLD 15 years to hit this milestone. IBIT did it in beneath 2 years.
A number of macro elements are driving bitcoin’s progress. Rate of interest cuts, geopolitical stability and regulatory readability following the SEC’s approval of spot bitcoin ETFs are a couple of to call.
Analysts anticipate extra progress with projections of $200 billion in complete bitcoin ETF AUM by the top of 2025.
