BlackRock’s Bitcoin ETF Achieves Unprecedented Growth in 2024

BlackRock’s Bitcoin (BTC) exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), has reached a monumental milestone. Just 11 months after its launch, the ETF has surpassed $50 billion in assets under management (AUM), setting a new record for ETF debuts. This rapid rise has earned it recognition as one of the most successful ETF launches in history.

A Record-Breaking Launch

According to Bloomberg, no other ETF has debuted with a stronger performance than IBIT. Todd Sohn, managing director of ETF and technical strategy at Strategas Securities, highlighted that IBIT’s current AUM is now greater than the combined assets of over 50 European market-focused ETFs, most of which have been established for decades. This rapid growth is a testament to the growing investor interest in Bitcoin and its potential for returns.

Nate Geraci, president of advisory firm The ETF Store, called IBIT’s launch “the greatest launch in ETF history.” This statement reflects the extraordinary pace at which the fund has gained traction in the market.

IBIT’s asset growth has been nothing short of extraordinary. Bloomberg Intelligence analyst Eric Balchunas pointed out that IBIT reached $50 billion in assets five times faster than BlackRock’s iShares Core MSCI EAFE ETF, which took almost four years to achieve the same milestone. The Bitcoin ETF’s performance has also surpassed that of BlackRock’s iShares Gold ETF, the world’s second-largest gold fund.

The fund’s growth has been fueled by strong inflows, with IBIT seeing $37 billion in net inflows last year alone. As long as Bitcoin’s price remains stable, Geraci believes that IBIT could surpass SPDR Gold Shares, the largest gold ETF, by 2025.

James Seyffart, an analyst at Bloomberg Intelligence, predicts that IBIT could generate around $112 million annually based on its current asset level and an expense ratio of 0.25%.

“IBIT’s growth is unprecedented. It’s the fastest ETF to reach most milestones, faster than any other ETF in any asset class,” said Geraci, emphasizing the ETF’s extraordinary success.