BlackRock’s Bitcoin Trust Surpasses $80 Billion in Assets

BlackRock’s iShares Bitcoin Trust (IBIT) has reached a remarkable milestone, surpassing $80 billion in assets under management. This rapid ascent is unparalleled, as it took the largest gold ETF, SPDR Gold Shares (GLD), over 15 years to achieve a similar level. The swift increase in IBIT’s assets underscores the escalating institutional interest in Bitcoin, fueled by the broader market rally.

In a single day, IBIT experienced inflows of $448.5 million, more than doubling its typical daily average. This substantial capital influx has propelled IBIT’s assets under management to nearly $80 billion, with the fund now holding over 700,000 Bitcoin. This unprecedented performance underscores the fund’s appeal to investors, who are increasingly recognizing Bitcoin as a credible investment option.

The robust performance of IBIT is not an isolated occurrence. Other Bitcoin ETF issuers, such as Fidelity’s FBTC and Ark 21Shares’ ARKB, also recorded substantial inflows on the same day. Fidelity’s FBTC saw inflows of $324.34 million, while Ark 21Shares’ ARKB attracted $268.7 million in fresh capital. This collective surge in Bitcoin ETF activity emphasizes the growing institutional interest in the cryptocurrency market.

The influx of new funds into these ETFs is a notable achievement, as it involves persuading investors to commit to the ETFs. According to an analyst, while market appreciation can boost assets, attracting new investors presents a different challenge. The analyst highlighted that the Bitcoin ETFs could surpass gold funds in assets within the next 3 to 5 years, given the current trajectory of inflows.

Ethereum ETFs also performed strongly on the same day, with the nine US spot Ethereum funds collectively attracting over $383 million in inflows. BlackRock’s iShares Ethereum Trust (ETHA) was at the forefront of this momentum, bringing in more than $300 million of the total inflows. This performance is the second-best day for Ethereum ETFs since their launch last year, further emphasizing the growing interest in cryptocurrency ETFs.

The strong performance of both Bitcoin and Ethereum ETFs is a clear indication of institutional interest in the cryptocurrency market. Financial advisors, who control enormous amounts of capital, have only just begun allocating to Bitcoin and Ethereum ETFs. Major platforms are still gatekeeping these ETFs, but the near-record inflows suggest that the trend is likely to continue.