BlackRock Bitcoin ETF Reaches $50 Billion

• BlackRock IBIT leads Bitcoin ETFs with $50 billion.
• Bitcoin surpasses $100K, driven by institutional growth.
• Hybrid ETFs combine Bitcoin and gold for strategic diversification.

The iShares Bitcoin Trust (IBIT), launched by BlackRock in January 2024, ended the year setting historic milestones in the financial market. With less Within one year of its existence, the ETF reached $50 billion in assets under management (AUM), making it the fastest-growing ETF in history. This impressive result reinforces Bitcoin’s role as an essential asset in institutional investors’ portfolios and reaffirms BlackRock’s strength as a global leader in asset management, with over $11 trillion under management.

At the time of publication, the price of Bitcoin was quoted at US$93.374,98, up 0.3% in the last 24 hours.

IBIT’s explosive growth has not only attracted significant capital, but has also played a crucial role in driving Bitcoin’s valuation above the $100.000 mark for the first time. The adoption of Bitcoin ETFs has offered investors a more accessible and regulated alternative to exposure to the market’s leading cryptocurrency, reducing barriers to entry and increasing confidence in the crypto space.

With over 552.554 Bitcoins under management, IBIT ranks as the largest holder of Bitcoin among US ETFs. This represents approximately 2,6% of the total supply of the cryptocurrency, highlighting BlackRock’s influence on the market. Looking at the bigger picture, US-based ETFs now hold over 1,1 million Bitcoins, which is equivalent to 5% of the global supply of the digital currency. This impressive figure surpasses even the estimated holdings of Satoshi Nakamoto, the pseudonymous creator of Bitcoin, who is believed to have around 1,1 million coins.

Throughout 2024, IBIT has consistently led the market, accounting for over 50% of the daily trading volume of all Bitcoin ETFs in the United States. Even facing occasional outflows, such as the $188,7 million recently recorded, the fund has maintained its relevance, accumulating net inflows of $37,27 billion for the year. This performance puts it significantly ahead of competitors such as the Fidelity Wise Origin Bitcoin Fund, which captured approximately $12 billion in net inflows over the same period.

The growing popularity of Bitcoin ETFs has also impacted traditional gold markets. The concept of “digital gold” has gained traction as investors seek more modern alternatives aligned with technological transformations. While gold ETFs face significant net outflows, Bitcoin ETFs, led by IBIT, are expanding their market share, which now represents 1% of total ETF assets in the United States, valued at $10 trillion. This movement suggests a shift in investment patterns, with Bitcoin emerging as a new store of value amid global economic uncertainty.

In addition to the success of IBIT, new products are being launched to tap into the growing demand for Bitcoin exposure. Hybrid ETFs, such as STKD Bitcoin Gold, offer investors the ability to diversify between Bitcoin and gold, expanding the options available to different risk profiles. Other initiatives, such as ETFs focused on companies with large Bitcoin reserves, such as Tesla and MicroStrategy, are also gaining traction, highlighting the broad impact of Bitcoin on the ETF industry.

The year 2024 has cemented Bitcoin as a strategic asset in institutional portfolios. With BlackRock’s leadership and the diversification of products in the market, Bitcoin ETFs are not only redefining the perception of cryptocurrencies but also solidifying their position in the global financial market.