IBIT approaches 100.000 billion: the BlackRock ETF that is breaking all records

BlackRock's Bitcoin ETF, IBIT, is on the verge of reaching $100.000 billion in assets, marking a historic milestone in the financial industry.

The iShares Bitcoin Trust (IBIT), the BlackRock-managed Bitcoin spot ETF, is on the verge of reaching $100.000 billion in assets under management. 

The news, highlighted by Bloomberg Intelligence analyst Eric Balchunas via the social network X, has shaken both the traditional financial industry and the crypto ecosystem. The growth of this fund is not only extraordinary for its magnitude, but also for the speed with which he has climbed positions within the universe of global ETFs.

Balchunas shared A chart comparing the time it took different funds to reach the $100.000 billion mark. The Vanguard S&P 500 ETF (VOO), one of the market's most iconic products, took 2.011 days to do so. IBIT, on the other hand, is close to achieving it in just 435 days, with only 2.000 billion remaining to cross the historic threshold. The gap is so vast that many analysts, like Balchunas, describe it as an unprecedented phenomenon in the history of financial markets.

IBIT's growth redefines BlackRock's hierarchy

BlackRock, the world's largest asset manager, has built its reputation on diversified, long-term products, such as ETFs linked to stock indices. However, IBIT has burst onto the scene with unexpected force. According to Balchunas, it is already the company's most profitable ETF in terms of commission income, outperforming funds that have been on the market for decades.

In June of this year, IBIT generated around $186 million annually for BlackRock. Today, that figure is close to $245 million, making it the firm's third largest revenue generatorTo put this in perspective, it took 25 years for other products from the company to reach the $207 million per year that today represents its all-time high. IBIT has managed to approach that figure in just a year and a half, driven by institutional and retail appetite for Bitcoin.

Like Balchunas, the entire crypto community has also closely followed this meteoric rise. In X threads, users like @1971Bubble they remembered He had already predicted this growth more than three months ago. According to his calculations, if Bitcoin reached $124.000, IBIT would become BlackRock's ETF with the highest gains. And if the cryptocurrency reaches $135.000, the fund would enter the top five of all the manager's ETFs by asset size.

The relationship between Bitcoin price and IBIT rise

IBIT's success cannot be understood without observing the evolution of Bitcoin's price. Since the U.S. Securities and Exchange Commission (SEC) approved Bitcoin spot ETFs in January 2024, the cryptocurrency has experienced a new wave of institutional adoption. The ability to invest in Bitcoin through a regulated vehicle backed by a giant like BlackRock has lowered the barriers to entry for thousands of investors.

Every increase in the price of Bitcoin translates into a direct increase in the value of IBIT's assets under management. This explains why the fund has grown so rapidly: not only does it attract fresh capital inflows, but it also benefits from the revaluation of the underlying assetThe combination of both factors has created a multiplier effect that has catapulted it to the top of the market in record time.

The contrast between IBIT and other BlackRock ETFs is also revealing. Products like the iShares Core S&P 500 (IVV), which form the backbone of traditional investment portfolios, have taken decades to establish themselves, while IBIT has managed to reach similar levels in less than two years. All of this reflects both Bitcoin's appeal and BlackRock's ability to capitalize on emerging trends.

A milestone that changes the perception of Bitcoin on Wall Street

IBIT's rise also has a symbolic component. For years, Bitcoin was viewed with skepticism by much of the traditional financial industry. It was associated with extreme volatility, regulatory risks, and an immature ecosystem. However, the entry of BlackRock and the success of its ETF have contributed to legitimize cryptocurrency as a serious investment asset with long-term projection.

The fact that IBIT is poised to become the most profitable ETF from the world's largest asset manager sends a clear message: Bitcoin is no longer a niche, but a core component in the investment strategies of millions of people. Furthermore, the fund's growth rate suggests that institutional demand for regulated exposure to Bitcoin is growing. it's just beginning.

The crypto community is celebrating this milestone as a validation of its predictions. Independent analysts note that if projected price scenarios come to fruition, IBIT could surpass BlackRock's historical products in a matter of months. For a company that manages more than $10 trillion in assets, its flagship product in terms of revenue is a Bitcoin ETF It is an unexpected turn that redefines internal and external priorities.

IBIT is breaking all records

In short, the iShares Bitcoin Trust is on the verge of reaching a milestone that seemed unthinkable just a few years ago: managing $100.000 billion in assets in less than 500 days. Its success is explained by a combination of factors such as the legitimacy provided by BlackRock, the growing acceptance of Bitcoin in institutional markets, and the speed with which investors seek exposure to new opportunities.

Balchunas emphasizes that no other ETF in history has grown so rapidly, while the crypto community interprets this milestone as confirmation that Bitcoin is destined to take center stage in global finance.