BlackRock Bitcoin ETF Sees Unprecedented Growth, $50B in AuM in 11 Months

Bitcoin BlackRock's spot Bitcoin ETF IBIT
BlackRock's IBIT is the most successful ETF ever.
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Sujha Sundararajan
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Sujha has been recognised as 🟣 Women In Crypto 2024 🟣 by BeInCrypto for her leadership in crypto journalism.

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BlackRock’s iShares Bitcoin Trust (IBIT) product has outperformed the asset manager’s other 1,400 exchange-traded funds (ETFs) this year. Nate Geraci, president of The ETF Store, calls it “the greatest launch in ETF history.”

Per a recent Bloomberg report, the Bitcoin ETF, launched on January 11, 2024, is the most successful ETF ever.

BlackRock’s IBIT has amassed over $50 billion in assets under management (AuM) in the past 11 months, the report added. This is the first time an ETF is making a massive debut.

According to Todd Sohn, managing director of ETF and at Strategas Securities, IBIT’s AuM was equivalent to over 50 European market-focused ETFs combined. Some of those European ETFs were more than 20 years old.

“IBIT’s growth is unprecedented,” noted Bloomberg Intelligence analyst James Seyffart. “It’s the fastest ETF to reach most milestones, faster than any other ETF in any asset class.”

Seyffart forecasted that IBIT could earn about $112 million a year, given an expense ratio of 0.25% and with the current asset level.

This comes a day after the US Spot Bitcoin ETFs recorded a remarkable $35.66 billion net inflows in 2024. BlackRock’s IBIT led the market with $37.31 billion in inflows.

Further, BlackRock’s $11 trillion in assets under management has helped drive Bitcoin’s price past $100,000 for the first time.

BlackRock’s IBIT Could Outshine Gold Shares

While BlackRock’s IBIT leading the charge, Gold ETFs, with a current market size of $274 billion, are experiencing significant outflows for the first time in six months.

Additionally, there is speculation that IBIT could outperform the largest gold ETF – SPDR Gold Shares, provided Bitcoin price remains strong.

Nate Geraci recently shared a chart that makes a notable comparison between spot gold ETFs and bitcoin ETFs in the US. For reference, Gold ETFs were launched in 2004, while Bitcoin ETFs were launched in 2024.

This shows that Bitcoin is viewed less riskier and more as a form of “digital gold.”

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