BlackRock's iShares Bitcoin Trust (IBIT) has set a new record for the ETF market in just 10 months.
This was highlighted by Bloomberg ETF analyst Eric Balchunas, from his X account, where he revealed that BlackRock's Bitcoin exchange-traded fund, IBIT, has reached an impressive milestone by surpassing $40.000 billion in total assets in just 10 months since its launch.
According to Balchunas, this achievement not only surpasses the previous record for ETFs, which had also been set by BlackRock, with the iShares Core MSCI Emerging Markets (IEMG) fund, but also reflects the exponential growth of the cryptocurrency market driven by the optimism currently surrounding Bitcoin and crypto assets in general.
According to Balchunas, IBIT has seen its total assets grow by $10.000 billion in just two weeks, indicating an insatiable demand from investors for Bitcoin. This exponential growth is directly related to the rise in the price of the cryptocurrency, which has surpassed $93.400 amid optimism over Donald Trump's victory in the United States.
Bitcoin smashes records in spot ETF market
As Balchunas noted, IBIT has obliterated the previous ETF record, which was set by the IEMG fund when it reached $40.000 billion in total assets over a 1.253-day period. In comparison, the IBIT has achieved this milestone in a significantly shorter time, just 211 days., which demonstrates how quickly the cryptocurrency market is maturing and attracting big investors.
“IBIT has hit the $40 billion asset mark (just two weeks after hitting $30 billion) in a record 211 days, obliterating the previous record of 1.253 days held by IEMG”, the analyst commented.
However, Balchunas also highlighted that, at 10 months, the IBIT has become the largest of the 2.800 ETFs launched in the last ten yearsThis achievement fully underlines the importance and potential of Bitcoin and the cryptocurrency market in the financial world.
The impact of the launch of Bitcoin ETFs in the United States
The launch of Bitcoin spot ETFs in the US, which were approved in January, has had a significant impact on the broader market. Investor demand for these exchange-traded funds, which provide direct and regulated access to the leading cryptocurrency, has been overwhelming, with a large amount of money flowing into these innovative financial products on a daily basis.
To date, BlackRock has positioned itself as the leader in this market, surpassing Grayscale Investments, which had been the main player in the Bitcoin investment space until the arrival of these new exchange-traded products. BlackRock's ability to offer ETFs at more competitive prices and with more accessible structures has been key to attracting a broader investor base. Likewise, its well-known reputation in the market has played in its favor in its positioning as a benchmark for Bitcoin investment.
Source: iShares
Exponential investor demand and fierce competition in the Bitcoin ETF market
On data platforms like Soso Value demonstrate that investor demand has been exceptional since the launch of Bitcoin ETFs. At the time of writing, All ETFs listed on the US market exceed $93.500 billion in total assetsIn Hong Kong, where these exchange-traded funds were also approved, even with in-kind subscriptions (which refers to Bitcoin), they have accumulated $248 million dollars, a figure that is also considered successful, considering the short time that these funds have been listed on the market.
Regarding the exponential growth of BlackRock's Bitcoin ETF, Anthony Pompliano said “This is crazy,” emphasizing that investors have shown an insatiable appetite for accessing cryptocurrency through more traditional, accessible and regulated financial vehicles such as exchange-traded funds.
Grayscale Investments, which had dominated the market with its Bitcoin Trust (GBTC), which was previously a private investment fund, has seen a decline in its total assets as investors have flocked to new ETFs, such as BlackRock's and Fidelity Invest's.
In conclusion, the success of BlackRock’s iShares Bitcoin Trust (IBIT) in reaching $40.000 billion in total assets in just 10 months is a testament to the exponential growth of the cryptocurrency market and the insatiable demand from investors. This achievement not only surpasses previous records in the traditional ETF market, but also underlines the importance of Bitcoin ETFs and cryptocurrency itself in the global financial market.
