BlackRock’s iShares Bitcoin Trust ETF (IBIT) has surpassed $30 billion in assets under management, making it the fastest-growing ETF in history. According to Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, IBIT achieved this milestone in just 293 days, outpacing the growth rates of the JPMorgan Equity Premium Income ETF (JEPI) and major Gold ETFs, which reached the $30 billion mark in 1,272 days and 1,790 days, respectively. CryptoSlate had predicted in January that the ETF’s performance would surpass Gold ETFs.
Bloomberg data reveals that IBIT’s market valuation crossed $30 billion following significant inflows and Bitcoin’s price appreciation on Oct. 29. The fund currently holds more than 417,000 Bitcoin, representing approximately 2% of the total Bitcoin supply. Bitcoin community member Sani 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 worldwide, behind only Coinbase and Binance.
The success of BlackRock’s ETF coincides with a surge in institutional demand for Bitcoin. As of Oct. 29, ETFs cumulatively reported a daily net inflow of $870 million, with BlackRock’s IBIT leading the flow. Other notable funds experiencing strong interest include Fidelity’s FBTC, which received $133.86 million in net inflows, and Bitwise’s BITB, which attracted $52.49 million. Additionally, VanEck’s HODL, Ark, and 21Shares’ ARKB recorded inflows of $16.52 million and $12.39 million, respectively, while the remaining spot Bitcoin ETFs saw no inflows on that day.
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. According to research firm CryptoQuant, these impressive numbers reflect a broader trend of institutional interest in Bitcoin. Ki Young Ju, the firm’s founder and CEO, noted that over the past year, approximately 278,000 BTC, primarily from retail investors, flowed into US spot ETFs. During the same period, roughly 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 approximately double that of retail investors. This surge underscores the growing role of institutional investors in the Bitcoin market, with major funds like BlackRock’s IBIT setting the pace.
