BlackRock's iShares Bitcoin Trust Surpasses $70 Billion in 341 Days

BlackRock's iShares Bitcoin Trust (IBIT) has achieved a historic milestone by surpassing $70 billion in assets under management (AUM) in just 341 days. This remarkable feat makes IBIT the fastest ETF to reach this threshold, outperforming previous records by a significant margin. The previous record-holder, SPDR Gold Shares, took 1,691 days to achieve the same milestone. Other prominent ETFs, such as VOO, IEFA, and IEMG, also lag far behind IBIT’s rapid growth, taking 1,701 days, 1,773 days, and 2,063 days respectively.

The swift rise in IBIT’s AUM is closely tied to the continued rally of Bitcoin. At the time of reporting, Bitcoin is trading above $108,000, reflecting a broader institutional embrace of Bitcoin as a legitimate and increasingly preferred asset class. BlackRock’s accumulation strategy has positioned it at the forefront of institutional Bitcoin investment, holding over 663,000 bitcoin, more than any other institution, including MicroStrategy, which owns 582,000 BTC.

IBIT now manages $71.9 billion in assets and holds 661,457 Bitcoin (BTC), making BlackRock the world’s largest institutional holder of Bitcoin. The ETF is currently trading at $61.77 per share and has recorded $201 million in inflows so far in June, following a record $5.9 billion in May inflows. The fund started trading on the Nasdaq on Jan. 11, 2024, a day after spot Bitcoin ETFs were approved by U.S. regulators. IBIT’s first day of trading saw a volume of over $1 billion, indicating strong interest from institutional and retail investors.

In an interview, Robert Mitchnick, head of digital assets at BlackRock, attributed IBIT’s success to Bitcoin’s expanding use as an inflation hedge and alternative store of value. He also noted that IBIT has outpaced even the world’s largest gold fund in inflows this year, with $6.96 billion net since January, ranking sixth among all ETFs. The fund’s rapid growth has led some analysts to speculate that BlackRock could eventually overtake Bitcoin’s pseudonymous creator, Satoshi Nakamoto, who is estimated to hold around 1.1 million BTC.

Adding to its momentum, on June 4, Russia’s MOEX exchange launched futures for IBIT, though these remain limited to accredited investors. IBIT’s rise coincides with the growing interest in crypto ETFs and institutional exposure to Bitcoin, solidifying its position as the industry leader in the rapidly changing digital assets landscape. The record-breaking pace of IBIT’s growth underscores the demand from investors seeking regulated exposure to Bitcoin through traditional financial products. This milestone reflects the accelerating pace at which capital is flowing into Bitcoin markets, reshaping the legacy financial industry. As Bitcoin continues to hold just below its peak, and institutional products like IBIT grow at unprecedented speeds, all eyes are on what comes next for both Bitcoin and the financial industry.