BlackRock’s iShares Bitcoin Trust Hits $80 Billion AUM in 374 Days

BlackRock’s iShares Bitcoin Trust (IBIT) has set a new record by becoming the fastest fund to achieve $80 billion in assets under management (AUM). This milestone was reached in just 374 days, a remarkable feat that surpasses the previous record held by the Vanguard S&P 500 ETF (VOO), which took 1,814 trading days to reach the same level. This rapid growth underscores the surging interest in Bitcoin and cryptocurrency-related financial products, as well as the increasing institutional adoption of digital assets.

IBIT’s achievement positions it as the 21st largest ETF globally by assets, a significant accomplishment for an ETF that debuted on Wall Street just over a year ago. The ETF’s holdings of 706,008 Bitcoin make it the largest institutional holder of the cryptocurrency, surpassing major players like Binance and Michael Saylor’s Strategy. The largest holder of Bitcoin is still presumed to be its enigmatic creator, Satoshi Nakamoto, with estimates suggesting that addresses linked to Satoshi hold roughly 1.1 million BTC, accounting for around 5.2% of Bitcoin’s 21 million supply.

The rapid growth of IBIT’s AUM can be attributed to several factors, including the increasing institutional adoption of Bitcoin, the regulatory clarity provided by the approval of spot Bitcoin ETFs, and the overall bullish sentiment surrounding the cryptocurrency market. The ETF’s performance also reflects the broader trend of investors seeking exposure to Bitcoin through regulated and transparent investment vehicles, rather than directly holding the cryptocurrency. This trend is evident in the massive inflows to Bitcoin ETFs, which locked in over $1.17 billion in inflows on a single day, notching their second-highest single-day totals since launch as institutional money flooded into cryptocurrencies.

The achievement of $80 billion in AUM is a significant milestone for BlackRock and the broader cryptocurrency industry. It demonstrates the potential for Bitcoin and other digital assets to become mainstream investment options, as well as the growing demand for regulated and transparent investment vehicles in the cryptocurrency market. The success of IBIT also highlights the importance of innovation and adaptation in the financial industry, as traditional asset managers continue to explore new opportunities in the digital asset space. The ETF’s rapid ascent is a testament to its appeal and the broader trend of institutional and retail investors turning to Bitcoin as a viable investment option. The ETF’s success also indicates a growing acceptance of cryptocurrencies within traditional financial markets, as more investors look to diversify their portfolios with digital assets.