BlackRock’s iShares Bitcoin Trust ETF (IBIT) has made history by becoming the fastest-growing ETF ever, surpassing $30 billion in assets under management in just 293 days. This rapid growth outpaces the JPMorgan Equity Premium Income ETF and major Gold ETFs, which took 1,272 days and 1,790 days respectively to reach the same milestone.
According to Bloomberg Intelligence’s senior ETF analyst Eric Balchunas, IBIT achieved this record-breaking valuation on October 29, driven by significant inflows and the appreciation of Bitcoin’s price. The fund currently holds over 417,000 Bitcoin, equivalent to approximately 2% of the total Bitcoin supply.
If BlackRock’s IBIT maintains its current growth trajectory, it could potentially accumulate up to 500,000 Bitcoin by the end of 2024, making it the third-largest Bitcoin holder globally, following Coinbase and Binance.
This milestone coincides with a significant increase in institutional demand for Bitcoin. On October 29, ETFs collectively reported a daily net inflow of $870 million, with BlackRock’s IBIT leading the flow. Other prominent funds, including Fidelity’s FBTC, Bitwise’s BITB, VanEck’s HODL, and Ark and 21Shares’ ARKB, also experienced substantial inflows.
CryptoQuant’s analysis reveals that over the past year, approximately 278,000 BTC from retail investors flowed into US spot ETFs, while around 670,000 BTC moved into “whale” wallets holding over 1,000 BTC, excluding those on exchanges and mining pools. This trend suggests that institutional demand in custodial wallets is approximately double that of retail investors, highlighting the growing influence of institutional investors in the Bitcoin market, with major funds like BlackRock’s IBIT leading the way.
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