<a target="_blank" href="https://finance.yahoo.com/news/blackrock-bitcoin-fund-became-greatest-141253984.html?guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAIFyWr-kt-LWPvyO1a1zvECLSF9mIfEl0jsIFvqIPwRSpNCV4H4YgCS2JJvCT_Z_FbU_ForDlmpXoek1l2bU6jzSxLzLOQf3v1JDIE1KiGKofxpGRJH0pEUouC1IDGQyT4yG4XoPK3pJdweSr0Lph0SkodB66GhVl3gzhZPoTpFW&_guc_consent_skip=1735847213″ target=”_blank” rel=”noopener nofollow”>According According to Bloomberg, BlackRock's iShares bitcoin Trust (IBIT) has set a new benchmark in the world of exchange-traded funds (ETFs) since its launch in January 2024.
With over $50 billion in assets accumulated in just 11 months, IBIT has achieved an unprecedented feat in the industry, surpassing traditional funds that have been running for decades.
From skepticism to success
BlackRock's foray into the bitcoin market has been a pivotal moment not only for btc, but also for the cryptocurrency market in general.
With more than $11 trillion in assets under management, the company's support has helped bitcoin advance beyond the $100,000 mark for the first time, ushering in a wave of institutional interest and attracting investors who were previously skeptical of the digital asset.
However, the path to establishing a spot bitcoin ETF in the United States has been fraught with challenges. The Winklevoss twins pioneered the effort in 2013, only to face repeated rejections from the U.S. Securities and Exchange Commission (SEC).
Grayscale Investments, on the other hand, led a legal battle against the SEC, which culminated in a crucial decision. victory in 2023, when a federal appeals court overturned the agency's previous rejection of its ETF application.
As the landscape changed, the entry of BlackRock, led by CEO Larry Fink, who had once disparaged bitcoin, marked a significant change in attitude within traditional finance.
Once the SEC granted approval in January 2024, BlackRock and other firms such as Fidelity and VanEck successfully launched the first cohort of US ETFs investing directly in bitcoin, collectively accumulating around $107 billion in assets.
Todd Sohn, managing director of ETFs and technical strategy at Strategas Securities, noted that IBIT's rapid growth dwarfs the combined assets of more than 50 Europe-focused ETFs, many of which have been established for more than 20 years.
Nate Geraci, president of The ETF Store, aptly described IBIT as “the biggest launch in ETF history.” Bloomberg Intelligence analyst James Seyffart also noted that IBIT is the fastest ETF to reach significant milestones, further cementing its status as a revolutionary product in the financial landscape.
BlackRock bitcoin ETF Surpasses $50 Billion in Assets
Amid a growing bitcoin ETF spot market, IBIT has distinguished itself by rapidly growing its assets, reaching more than $50 billion, five times faster than the next closest fund, which took almost four years.
As it stands, IBIT has outperformed BlackRock's gold ETF, the second-largest gold fund globally, despite significant capital inflows into that fund this year.
The impact of IBIT on bitcoin market dynamics is profound. The ETF has been instrumental in bitcoin's 118% rise price spike So far this year, IBIT accounts for more than 50% of the daily trading volume among bitcoin ETFs.
IBIT also made history by being the first bitcoin ETF to offer options, which have quickly become some of the most traded contracts in the ETF market, averaging around $1.7 billion in daily notional volume.
According to research from Asym500, other bitcoin ETFs have struggled to reach similar levels of trading activity, highlighting IBIT's dominance.
At the time of writing, the market-leading cryptocurrency btc is trading at $97,190, recording a gain of almost 3% in the 24-hour period.
Featured image of DALL-E, chart from TradingView.com
