BlackRocks Bitcoin ETF IBIT Surges 300% Driving BTC to $120,133

BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT) has achieved a remarkable milestone, becoming the firm’s most profitable exchange-traded fund (ETF) in less than two years since its debut. This accomplishment underscores the growing interest in Bitcoin (BTC) among institutional investors, with ETFs serving as a crucial entry point for gaining exposure to the asset.

The success of IBIT has significantly contributed to Bitcoin’s ongoing bull run, which recently reached a record high above $123,000. As of the latest reports, Bitcoin was trading at $120,133, reflecting an over 1% increase in the past 24 hours. Since its launch in early 2024, IBIT has delivered returns of around 300% for investors, with demand surging amid Bitcoin’s rally.

IBIT’s assets have surged to $88 billion, making it the 20th-largest ETF overall in the United States and the seventh-largest in BlackRock’s entire lineup. The ETF was also the third most-traded fund in the U.S. on July 14, trailing only the S&P 500 ETF and the Nasdaq-100 ETF. This highlights the substantial demand for the ETF and its role in driving Bitcoin’s momentum.

The Bitcoin rally has been a major catalyst for this momentum. With the world’s largest cryptocurrency setting new record highs, flows into spot Bitcoin ETFs have ballooned. According to an analyst, these products have attracted $50 billion in net new money since their launch, with IBIT alone accounting for more than half of those inflows. This influx of capital has further fueled Bitcoin’s price surge, positioning it as a key asset in the digital currency landscape.

Alongside Bitcoin ETFs, Ethereum-focused funds have also seen increased interest, though on a smaller scale. This broader interest in cryptocurrencies reflects the growing acceptance and integration of digital assets into mainstream investment portfolios. BlackRock’s investment in digital assets, particularly Bitcoin, has positioned the company as a significant player in the cryptocurrency market, highlighting the potential for further growth and innovation in this sector.