BlackRock’s Bitcoin ETF Exceeds 500K BTC in AUM

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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December 3, 2024 10:26 EST

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BlackRock’s IBIT Bitcoin ETF crossed a major milestone on last week, surpassing 500,000 BTC in assets under management (AUM), valued at $48 billion.

The milestone came less than a year after the ETF launched on January 11, 2024.

BlackRock’s Bitcoin ETF Achieves 500,000 BTC Milestone

Recent report from K33 reveals that $338.3 million in net inflows on November 29 pushed BlackRock’s Bitcoin ETF holdings to 500,380 BTC.

This accounts for 2.38% of Bitcoin’s total capped supply, highlighting the increasing demand for these investment vehicles among institutional investors.

Industry expert Vetle Lunde, K33’s Head of Research, described the achievement as “yet another huge milestone after a tremendous launch year.”

Lunde also noted that the ETF’s institutional ownership stood at 24% as of Q3 2024.

He added, “Eventually, we expect these vehicles to emerge into standard portfolio diversifiers with large funds allocating 1-3% of their capital to these funds due to BTC’s tendency to improve risk-adjusted returns.”

BlackRock’s success is reflective of the growing demand for Bitcoin ETFs, with IBIT becoming the third-strongest ETF in the U.S. by year-to-date flows, trailing only larger funds like Invesco’s QQQ.

Broader Impact on the Crypto Market

The rise of Bitcoin ETFs has played a role in Bitcoin’s record price movements this year.

Bitcoin is trading at $94,762 as of writing, a 38% increase since March when BlackRock CEO Larry Fink described IBIT as “the fastest-growing ETF in the history of ETFs.”

He expressed surprise at the pace of Bitcoin’s price appreciation during a Fox Business interview.

In October, BlackRock CEO Larry Fink stated that Bitcoin’s growth is not tied to political events, including the Trump vs. Harris presidential race.

During BlackRock’s Q3 earnings call, he described Bitcoin as “an asset class in itself” that transcends global politics.

His claim was heavily refuted, as U.S. Bitcoin ETFs collectively recorded $353.6 million in net inflows on November 29, bringing their total to $31.2 billion since inception, with the recently concluded election playing a major role in this development.

November alone saw a record $6.6 billion in inflows, demonstrating robust investor interest.

Market observers believe this surge has been instrumental in driving Bitcoin’s price to all-time highs, as ETFs simplify Bitcoin exposure for traditional investors.

The cumulative holdings of U.S. Bitcoin ETFs are now approaching 1.1 million BTC, close to the estimated stash attributed to Bitcoin’s creator, Satoshi Nakamoto.

Nakamoto’s holdings, based on mining patterns, are thought to range between 600,000 and 1.5 million BTC, though the widely accepted figure is 1.1 million BTC.

While Bitcoin ETFs dominate the market, U.S. Ethereum ETFs have also seen steady inflows.

BlackRock’s ETHA fund led the pack with $55.9 million in net inflows, contributing to a November total of $1.1 billion across Ethereum ETFs.

Looking ahead, experts predict continued growth for Bitcoin ETFs. Lunde anticipates that funds like IBIT may surpass 1 million BTC in AUM by 2025, aided by Bitcoin’s rising value and diversification benefits.