BlackRock’s iShares Bitcoin Trust ETF (IBIT) has reached $30 billion in assets under management, becoming the fastest-growing ETF in history. Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, stated that IBIT achieved this milestone in just 293 days, surpassing the growth rates of the JPMorgan Equity Premium Income ETF (JEPI) and major Gold ETFs, which took 1,272 days and 1,790 days, respectively, to reach the same level. CryptoSlate had predicted in January that the ETF’s performance would outpace Gold ETFs.
According to Bloomberg data, IBIT’s market valuation crossed $30 billion on October 29, following substantial inflows and an increase in Bitcoin’s price. The fund currently holds over 417,000 Bitcoin, accounting for approximately 2% of the total Bitcoin supply. Sani, a member of the Bitcoin community, observed that if BlackRock’s IBIT maintains its current growth, it could accumulate up to 500,000 Bitcoin by the end of 2024, making it the third-largest Bitcoin holder globally, behind only Coinbase and Binance.
The success of BlackRock’s ETF coincides with a surge in institutional demand for Bitcoin. On October 29, ETFs cumulatively reported a daily net inflow of $870 million, with BlackRock’s IBIT leading the flow. Other major funds, such as Fidelity’s FBTC, Bitwise’s BITB, VanEck’s HODL, and Ark and 21Shares’ ARKB, also experienced strong interest. Nate Geraci, president of the ETF Store, highlighted that this level of inflow marks the third-highest daily inflow for spot Bitcoin ETFs since their launch in January.
Ki Young Ju, founder and CEO of research firm CryptoQuant, noted that over the past year, about 278,000 BTC, primarily from retail investors, flowed into US spot ETFs. During the same period, approximately 670,000 BTC moved into “whale” wallets holding over 1,000 BTC, excluding those on exchanges and mining pools. Ju explained that this trend indicates institutional demand in custodial wallets is roughly double that of retail investors.
