IBIT, BlackRock’s Bitcoin ETF, Breaks Record​ by Surpassing $40 Billion​ іn Total Assets

Leonardo Perez 2024-11-15 10:18:03

BlackRock’s iShares Bitcoin Trust (IBIT) has set​ a new record for the ETF market​ Ñ–n just​ 10 months.

Bloomberg ETF analyst Eric Balchunas, writing​ оn his​ X account, revealed that BlackRock’s IBIT ETF has reached​ a significant milestone, surpassing $40 billion​ Ñ–n total assets​ Ñ–n just​ 10 months since its inception.

The achievement, Balchunas said, not only surpasses the previous ETF record set​ by BlackRock’s iShares Core MSCI Emerging Markets (IEMG) fund, but also reflects the rapid growth​ оf the cryptocurrency market, fueled​ by the current optimism around bitcoin.

Balchunas said IBIT’s $10 billion increase​ Ñ–n balance sheet total​ Ñ–n just two weeks shows the voracious appetite​ оf investors. This exponential growth​ Ñ–s directly related​ tо the cryptocurrency’s price spike, which has been over $93,400 amid optimism over Donald Trump’s victory​ Ñ–n the United States.

Bitcoin Shatters Records​ іn the Spot ETF Market

As Balchunas noted, IBIT shattered the previous ETF record set​ by IEMG, which reached $40 billion​ Ñ–n assets​ Ñ–n 1,253 days. This shows how quickly the cryptocurrency market​ Ñ–s maturing and attracting large investors,​ as IBIT reached this milestone​ Ñ–n​ a much shorter time​ оf just 211 days.

“IBIT reached $40 billion​ Ñ–n assets​ Ñ–n​ a record 211 days (just two weeks after reaching $30 billion), shattering the previous record​ оf 1,253 days held​ by IEMG,” the analyst said.

However, Balchunas also pointed out that​ at​ 10 months, the IBIT has become the largest​ оf the 2,800 ETFs that have been launched​ Ñ–n the last decade. The importance and potential​ оf bitcoin and the cryptocurrency market​ Ñ–n the financial world​ Ñ–s underscored​ by this achievement.

Effects​ оf the Launch​ оf Bitcoin ETFs​ іn the U.S.

The broader market has been significantly impacted​ by the launch​ оf spot bitcoin ETFs​ Ñ–n the United States, which were approved​ Ñ–n January. Investor demand for these ETFs, which provide direct and regulated access​ tо the top cryptocurrency, was overwhelming, with significant daily flows into these innovative financial products.

So far, BlackRock has positioned itself​ as​ a leader​ Ñ–n this market, surpassing Grayscale Investments, which was the leading player​ Ñ–n the bitcoin investment space until the arrival​ оf these new ETFs. The key​ tо attracting​ a broader investor base has been BlackRock’s ability​ tо offer ETFs​ at more competitive prices and with more accessible structures. The market’s well-known reputation also contributed​ tо the company’s position​ as​ a benchmark for investment.

Exponential Investor Demand and Fierce Competition​ іn the Bitcoin ETF Market

Since the launch​ оf bitcoin ETFs, data from platforms such​ as Soso Value shows that investor demand has been extraordinary.​ Sо far, all ETFs listed​ Ñ–n the​ US market exceed $93.5 billion​ Ñ–n total assets.​ In Hong Kong, where these ETFs have also been approved, they have accumulated $248 million even with in-kind subscriptions (referring​ tо bitcoin),​ a figure that​ Ñ–s also considered​ a success considering the short time these funds have been​ оn the market.

“This​ Ñ–s crazy,” Anthony Pompliano said​ оf the rapid growth​ оf BlackRock’s ETF, highlighting that investors are showing​ a voracious appetite​ tо access cryptocurrencies through more traditional, accessible and regulated financial vehicles such​ as ETFs.

In summary, the success​ оf BlackRock’s iShares Bitcoin Trust (IBIT)​ Ñ–n surpassing $40 billion​ Ñ–n total assets​ Ñ–n just​ 10 months demonstrates the exponential growth​ оf the cryptocurrency market and the insatiable demand from investors. This achievement not only surpasses previous records​ Ñ–n the traditional ETF market.​ It also underscores the importance​ оf bitcoin ETFs and the cryptocurrency itself​ Ñ–n the global financial marketplace.

By Leonardo Perez