BlackRock's Bitcoin ETF IBIT Sees $6.96 Billion Inflows, Surpasses Gold ETF GLD

BlackRock's Bitcoin ETF, IBIT, has achieved a significant milestone by attracting a net inflow of $6.96 billion since the beginning of the year. This impressive figure has propelled IBIT to the sixth position among all U.S. ETFs in terms of year-to-date (YTD) flows, surpassing the SPDR Gold Trust (GLD), which had previously held this rank. GLD, the world’s largest physically backed gold ETF, now stands in seventh place with $6.5 billion in net inflows.

This shift in investor preference from gold to Bitcoin is notable, especially given the historic rally of gold this year. Despite Bitcoin experiencing a price dip of over 10% from its January peak, investors remain confident in its long-term value. In contrast, gold has seen a significant climb, surpassing $3,000 due to concerns over inflation, global trade tensions, and geopolitical instability. This divergence highlights a growing trend among institutional investors who are increasingly favoring digital assets over traditional safe-haven investments like gold.

Eric Balchunas, a senior ETF analyst, commented on the strong inflows into IBIT, describing it as a positive sign for the long-term prospects of Bitcoin ETFs. He noted that the inflows into IBIT are particularly impressive given that the ETF has only seen a 4% increase in value compared to GLD's substantial gains. This suggests that investors are bullish on Bitcoin's future despite its recent price fluctuations.

The surge in inflows into IBIT is part of a broader trend of aggressive accumulation in spot Bitcoin ETFs. Spot Bitcoin ETFs acquired 18,644 BTC over the past week, which is nearly six times the amount of Bitcoin mined during the same period. This aggressive buying indicates a strong demand for Bitcoin, driven by institutional investors seeking exposure to the cryptocurrency market.

Since launching in January 2024, the BlackRock Bitcoin ETF has accumulated an astounding $44.25 billion in net inflows. Notably, IBIT set a record on Nov. 7, 2024, when it absorbed a single-day inflow of $1.12 billion, marking the highest ever for any Bitcoin ETF to date. The BlackRock Bitcoin ETF’s performance across different time frames has been equally impressive. Last week alone, it observed $2.48 billion in net inflows, its most impressive weekly performance since December 2024. Meanwhile, in April, net inflows amounted to $2.69 billion despite Bitcoin’s price struggles.

These flows have culminated in a one-year total of over $27 billion. Interestingly, within this one year, the BlackRock Bitcoin ETF only witnessed one month of outflows, when it shed $775 million in February 2025. This consistency across timeframes shows institutional confidence in Bitcoin’s long-term potential. Moreover, IBIT’s assets under management (AUM) have surged to $59.64 billion making it the eleventh-largest ETF in BlackRock’s iShares suite, which includes over 400 funds.

For context, IBIT’s AUM climbed from zero at its January 2024 debut to $15 billion within just eight weeks. By October 2024, it had hit $30 billion, doing so in a record 293 days, a feat that took GLD nearly five years to achieve. This occurs despite Bitcoin’s more modest YTD price increase of about 4%, compared to gold’s 29%. If it continues at this pace, analysts believe IBIT could potentially overtake GLD’s current AUM of $98.6 billion within the next few years.

Notably, over the past month alone, IBIT’s price surged by roughly 22.86%, rising from $44.98 to $55.27. Meanwhile, GLD’s price climbed approximately 13.47%, moving from $274.65 to $311.64. The regulatory landscape for cryptocurrency ETFs remains uncertain, with the SEC yet to approve any ETF product with staking functionality. However, the Crypto Council for Innovation, backed by major firms, has called on the SEC for regulatory clarity on staking, arguing that it is a technical process rather than a securities transaction. This push for regulatory clarity could pave the way for more innovative ETF products in the future.

As the market awaits further clarity from the Federal Reserve, Bitcoin continues to hold its momentum. Investors are anticipating three rate cuts from the Fed in 2025, beginning potentially in July. While no changes are expected at the upcoming meeting, the broader market outlook has improved, with reduced recession risk and more benign macro outcomes. Bitcoin's technicals have strengthened compared to equities, with strong momentum indicators and favorable moving averages supporting its upward trend. This renewed confidence in Bitcoin is bolstered by strong inflows into spot ETFs, indicating a continued shift in investor sentiment towards digital assets.