BlackRock’s iShares Bitcoin Trust ETF (IBIT) has become the fastest growing ETF in history, with more than $30 billion in assets under management.
According to Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, IBIT reached this milestone in just 293 days, setting a new record. This pace exceeds the growth rates of the JPMorgan Equity Premium Income ETF (JEPI) and the major gold ETFs, reaching the $30 billion threshold in 1,272 and 1,790 days respectively. CryptoSlate predicted that the ETF’s performance would surpass gold ETFs in January.
Bloomberg facts reveals that IBIT’s market value has surpassed $30 billion following substantial inflows and Bitcoin’s price surge on October 29. The fund currently owns over 417,000 Bitcoin, which represents approximately 2% of the total Bitcoin supply.
Bitcoin community member Sani observed that BlackRock’s IBIT could accumulate up to 500,000 Bitcoin by the end of 2024 if current growth continues. If achieved, this would make IBIT the third largest Bitcoin holder in the world, after Coinbase and Binance.
Growing institutional demand
The success of BlackRock’s ETF corresponds with a surge in institutional demand for Bitcoin.
As of October 29, the ETFs cumulatively reported daily net inflows of $870 million, with BlackRock’s IBIT leading the way. Other leading funds are also experiencing strong interest, with Fidelity’s FBTC receiving $133.86 million in net inflows, while Bitwise’s BITB attracted $52.49 million.
Meanwhile, VanEck’s HODL, Ark and 21Shares’ ARKB recorded inflows of $16.52 million and $12.39 million, respectively. The remaining spot Bitcoin ETFs saw no inflows that day.
Nate Geraci, President of the ETF Store, marked that this level of inflows marks the third highest daily inflows for spot Bitcoin ETFs since their launch in January.
According to research firm CryptoQuant, these impressive numbers reflect a broader trend of institutional interest in Bitcoin.
Ki Young Ju, founder and CEO of the company, noted that approximately 278,000 BTC – mostly from retail investors – flowed into US spot ETFs over the past year.
During the same period, approximately 670,000 BTC were transferred to ‘whale’ wallets holding more than 1,000 BTC, excluding those on exchanges and mining pools. Ju explained that this trend indicates that institutional demand for custodial portfolios is about double that of retail investors.
This increase highlights the growing role of institutional investors in the Bitcoin market, with major funds such as BlackRock’s IBIT setting the pace.