BlackRock's IBIT Hits $10B Faster Than Other ETFs

Blackrock Inc.'s spot bitcoin ETF reached $10 billion in assets Friday, quicker than any other ETF.

Bloomberg Intelligence data shows that the iShares Bitcoin ETF (IBIT) hit double digits in assets seven weeks after its Jan. 11 launch, following a week of record trading and inflows for the group of 10 spot bitcoin ETFs. Thursday saw $604 million in IBIT inflows, a day after a record $612 million.

IBIT is one of 152 ETFs out of 3,400 traded to reach $10 billion, according to Bloomberg ETF analyst Eric Balchunas. He tweeted that flows make up almost three-quarters of IBIT's assets under management, while price gains make up the balance. BlackRock's speed record beats the SPDR Gold Shares (GLD), which took more than two years after its 2004 inception to reach $10 billion,

BlackRock, which manages $2.7 trillion in 408 iShares ETFs, applied to the SEC to launch a bitcoin ETF in June 2023, a decade after the Winklevoss twins did. Analysts say the firm's spot bitcoin ETF registration marked a turning point in the decade-long regulatory battle between the SEC and ETF issuers to launch the first spot bitcoin fund.

Morningstar ETF analyst Bryan Armour said, “I'm not surprised that iShares is in the lead, they were the catalyst that put attention back on the spot bitcoin ETF filings last summer.” “I am surprised that iShares has already supplanted Grayscale’s GBTC as the main Bitcoin trading vehicle.”

Since 2021, the SEC has authorized bitcoin futures funds, but it has denied dozens of petitions for a bitcoin ETF that trades on its spot price. The watershed approval occurred on Jan. 10, and Fidelity Investments and Bitwise Asset Management began trading their funds the next day.

The cryptocurrency rose 20% in five days and 44% in a month. Coindesk reported that bitcoin hit $60,000 on Wednesday, the most since November 2021. Over the past week, bitcoin's price has risen, boosting assets in all the bitcoin ETFs and drawing new money. This week, Merrill Lynch and Wells Fargo & Co. added spot bitcoin ETFs to their brokerages, adding to the funds' asset flow.

Bitcoin ETFs have been hailed as a historic success since its inception, supporting cryptocurrency bulls and stunning naysayers with ETF investor response. After IBIT, Fidelity's Wise Origin Bitcoin Fund (FBTC) has $6.5 billion in assets, followed by the $2.1 billion ARK 21Shares Bitcoin ETF (ARKB) and the $1.5 billion Bitwise Bitcoin ETF.

stay turned for development