BlackRock’s Bitcoin ETF Surpasses $70 Billion in Record Speed

BlackRock’s iShares Bitcoin Trust (IBIT) has achieved the fastest ever growth to surpass $70 billion in assets under management (AUM). Launched in January 2024, it attained this milestone in 341 trading days.

Previously held by the SPDR Gold Shares ETF (GLD), the record of 1,691 days for reaching $70 billion is now five times surpassed by IBIT.

Institutional Demand Driving Growth

The unprecedented growth signifies strong institutional adoption of bitcoin. IBIT manages $71.9 billion, holding over 662,000 BTC, cementing BlackRock’s position as the world’s largest institutional holder.

This exceeds the holdings previously attributed to Binance or Michael Saylor’s Quant Network.

Analysts highlight IBIT’s rapid pace to milestones, with Bloomberg’s James Seyffart calling it “unprecedented.” BlackRock leveraged its brand strength and client base for immediate credibility.

Market Impact and Analyst Views

Bitcoin’s price rise following the ETF launch has corresponded with significant inflows. Bloomberg analyst Eric Balchunas noted a shift from skepticism post-HTF failures towards market acceptance.

“IBIT just blew through $70 billion and is now the fastest ETF to ever hit that mark in only 341 days,” Balchunas tweeted.

“IBIT’s growth is unprecedented,” Seyffart commented, “faster than any other ETF in any asset class.”

Robert Mitchnick, BlackRock’s head of digital assets, pointed to bitcoin’s role as an inflation hedge and store of value.

Outperformance and Future Challenges

IBIT outperforms its peers, capturing nearly 20% of all institutionalized and exchange-controlled bitcoin.

This dominance faces potential challenges as institutional interest grows. VanEck data indicates six major corporations plan to raise up to $76 billion to purchase bitcoin directly, signaling continued institutional deployment.

ETF Market Leadership

Financially, IBIT is the centerpiece of BlackRock’s investment management, largest among gold, equity, and fixed-income products.

Its debut saw record trading volume exceeding $1 billion on day one, reflecting initial investor confidence. Current brokerage sales promote IBIT’s leading position.