BlackRock Bitcoin ETF Is The Greatest Launch in ETF History

Key Points:

• BlackRock Bitcoin ETF became the fastest-growing ETF ever, reaching $50 billion in assets within 11 months of its 2024 debut.
• IBIT’s success helped push Bitcoin’s price past $100,000, drawing institutional investors and validating the cryptocurrency as a mainstream asset.

According to Bloomberg, BlackRock’s iShares Bitcoin Trust has created history in the first year of its existence.

Read more: BlackRock Bitcoin Ad Causes Controversy For Denying 21 Million Supply

BlackRock Bitcoin ETF Marks Unmatched Growth Record

The exchange-traded fund (ETF) that was launched in January 2024 gathered over $50 billion in assets in a record 11 months since its launch, topping all previous ETF launches in history. No ETF in any asset class has ever matched IBIT’s unprecedented growth.

Analysts have framed this as a remarkable feat. Todd Sohn at Strategas Securities said IBIT’s asset size is larger than more than 50 of the oldest European ETFs combined. James Seyffart at Bloomberg Intelligence called its rise “unprecedented,” citing that IBIT reached major milestones quicker than any other ETF. At its current size and a 0.25% expense ratio, IBIT would pull in an estimated $112 million annually.

Beyond the financial success, BlackRock Bitcoin ETF has been a game-changer for Bitcoin. BlackRock manages more than $11 trillion in assets and was instrumental in legitimizing Bitcoin as an investable asset.

BlackRock Bitcoin ETF has outperformed even its flagship gold ETF and set a new benchmark within the ETF space. The success of the fund helped Bitcoin break through $100,000 and attracted institutional investors while changing many sceptics into believers.

Regulatory Breakthrough Spurs Bitcoin ETF Revolution

The journey to a spot Bitcoin ETF in the U.S. was really tumultuous. The first attempt at approval by the Winklevoss twins came in 2013, along with many others, which were rejected by the U.S. Securities and Exchange Commission. A breakthrough came in 2023 when Grayscale Investments won a legal battle to turn its Bitcoin trust into an ETF.

BlackRock’s entry marked the seal of the market’s momentum. Given BlackRock’s history of perfect ETF launches, regulators saw the firm’s clearance as a change of heart. As this fund took off, a series of 12 Bitcoins, including those from Fidelity, overall amassed $107 billion in assets.